Aasai

Private firms linked to Kenya’s eCitizen platform have pocketed at least Ksh 1.45 billion, raising alarms over their growing influence on government revenue collection and the lack of transparency surrounding their operations.

At the center of the controversy is Pesaflow, a private company gazetted to collect payments for government services. The firm has been billing the state between Ksh 100 million and Ksh 200 million per month, placing its annual earnings at an estimated Ksh 2.4 billion. However, critical details about its ownership, contracts, and operations remain undisclosed.

Auditor-General Flags eCitizen Revenue Model

Auditor-General Nancy Gathungu has questioned Pesaflow’s role in managing eCitizen transactions, warning that the platform operates without a proper backup system. She also criticized the Ksh 50 convenience fee imposed on Kenyans for digital services, terming it unjustified.

Pesaflow operates alongside Webmasters Kenya and Olivetree Limited, forming a consortium allegedly tied to software developer James Ayugi. While Webmasters claims intellectual ownership of eCitizen, the government previously stated that the International Finance Corporation (IFC) had handed over the portal.

Before Pesaflow’s involvement, Webmasters had partnered with Goldrock Capital Ltd to manage government funds from eCitizen users. However, a fallout led to Goldrock’s removal, allowing Pesaflow to take over in 2017.

Ownership Structure & Silent Takeover Claims

Pesaflow was registered amid Goldrock’s legal dispute with the government, Safaricom, and Webmasters over control of mobile money wallets. Official records show its largest shareholders are:
✅ Evid Araka Sibi – 3,000 shares
✅ Frank Lawrence Ochieng Weya – 3,000 shares
✅ Charles Wambani Sewe – 2,000 shares
✅ Larry Ochleng Agoro – 2,000 shares

All these stakeholders have links to Webmasters, raising speculation of a silent takeover of eCitizen’s payment functions.

Despite his apparent involvement, James Ayugi has declined to clarify his relationship with both Webmasters and Pesaflow. He insists that Webmasters handles technology, Pesaflow manages payments, and Olivetree Limited provides communication services, including bulk SMS alerts.

Cybersecurity & Government Dependency on Private Firms

The Auditor-General has also warned that Kenya’s digital public services are heavily reliant on private vendors, posing security risks. With over 15,000 government services listed on eCitizen, a potential cyberattack could disrupt critical operations.

Additionally, the audit reveals that:
🚨 Government agencies rely on WhatsApp for system support
🚨 eCitizen’s helplines and email correspondence are controlled by private vendors
🚨 No clear service-level agreements exist between the government and the vendors

These findings have sparked concerns about government oversight, with critics calling for greater accountability and transparency in the management of digital revenue collection.