MP Tindi Mwale
The National Assembly’s Public Accounts Committee (PAC) has raised the alarm over massive irregularities and unauthorised payments linked to the government’s digital payments platform, E-Citizen.
In a committee meeting on Tuesday, August 5, members of the committee described the platform as a “crime scene” marred by large-scale corruption and theft of public resources.
The lawmakers who were responding to a special audit report by the Office of the Auditor-General on the operations of E-Citizen called for the immediate shutdown of the platform, citing grave national security concerns and the misuse of public funds.
Led by Butere MP Hon. Tindi Mwale, who chairs the committee, the committee members said the system operates without any legal foundation and should not be in use.
“From the findings of this report, the truth is, this system operates without any legal foundation. It completely lacks a legal framework; there’s no law under which it can be validated or regulated. There’s also no clear government structure to govern its operations,” Mwale said.
The Butere MP pointed out that the platform lacks standard operating procedures (SOPs) and service level agreements (SLAs) with financial service providers, which he said leaves the government exposed to legal and financial risks.
“Let’s be honest: if we truly care about this country, and with the National Treasury represented here, we must admit that we should not be using this system. It has no legal backing whatsoever,” he added.
The committee expressed concern that funds are being transferred to private entities and banks without the support of proper legal instruments, rendering the transactions not only irregular but outright illegal.
“Even if a dispute arose and went to court, the government could easily lose to a bank simply because there are no binding service level agreements in place. That’s how dangerously exposed we are,” Hon. Mwale warned.
He noted that despite the absence of legal and documentary support, all government services and payments are being funnelled through the platform, posing what he described as a national risk.
A review of the Auditor-General’s report uncovered unreconciled receipts totalling Ksh 6.3 billion and USD 68 million.
It also highlighted unauthorised transfers amounting to Ksh 127 million to private entities, and overcharges by the National Treasury exceeding Ksh 1.8 billion above the fees stipulated in the Kenya Gazette.
PAC recommended the immediate suspension of the platform’s operations until a clear legal and operational framework is established to safeguard public funds and national interest.
