ICT Principal Secretary Belio Kipsang has defended the government’s Ksh1.1 billion annual payout to firms maintaining the eCitizen platform. He said the money is needed to keep the system running smoothly and ensure Kenyans access services without disruption.
Why the Firms Are Paid
Kipsang explained that three companies handle different parts of the system.
- One manages the technical platform.
- Another runs the payment gateway.
- A third provides SMS feedback services.
“They were brought in through a competitive procurement process,” he said during an interview with NTV.
According to Kipsang, the firms receive between Ksh115 million and Ksh120 million every month, totaling about Ksh1.1 billion annually.
The Ksh50 Fee Debate
The defence comes as Kenyans raise concerns about the Ksh50 convenience fee charged on all eCitizen transactions. Users already pay service fees, and critics argue the extra charge is unfair.
A special report published in March revealed that Kenyans have irregularly paid over Ksh2.1 billion through this fee. The Auditor-General said it was imposed unlawfully, against Gazette Notice No. 9290/2014.
Between December 2023 and June 2024, more than Ksh30 million was overcharged through an old gateway that some government agencies still use.
Billions Collected, But Gaps Remain
Data shows that eCitizen collects more than Ksh250 billion every year. This means between Ksh750 million and Ksh1 billion passes through the system daily. All collections go directly to the Treasury’s single account.
However, the Auditor-General’s March report raised a red flag. It noted that the Treasury has not signed Service Level Agreements (SLAs) with financial providers handling collections. Without these agreements, over Ksh7.05 billion remains stuck in settlement accounts.
Auditor-General Nancy Gathungu warned that providers may be using public money for their own benefit, risking delays in service delivery.
What Next?
The government now faces pressure to improve transparency, resolve audit concerns, and review the convenience fee. At the same time, it must ensure eCitizen remains reliable as millions of Kenyans depend on it daily.
