How state burned Sh946m on idle services in eCitizen

The government spent almost Sh1 billion to digitise thousands of public services on the eCitizen platform, yet 80 per cent of them are not being used, a new audit has revealed.

The report by Auditor General Nancy Gathungu shows that while the state aggressively pushed ministries, departments and agencies onto the platform, most of the services uploaded remain dormant.

Gathungu has, in a review of the platform for the period to June 30, 2025, raised serious questions about planning, execution and value for money.

“Review of data revealed that a total of 28,373 services had been onboarded onto the eCitizen platform. However, only 5,731 services (20 per cent) were active, leaving 22,642 services unutilised since onboarding,” the report states.

Despite the low uptake, the government paid Sh946 million to vendors for onboarding the services.

“In the circumstances, value for money on payment for onboarding of unutilised services of Sh946,000,000 could not be confirmed,” the Auditor-General said.

The findings point to a mismatch between the government’s digitisation drive and actual public usage.

The audit highlights several state agencies carrying unusually high numbers of inactive services, pointing to inefficiencies across government.

Among the worst affected is the Kenya Forest Service, which accounts for 9,274 unutilised services.

Other agencies flagged include Kenya Seed Company, which had 1,590 unused services, followed by the National Police Service with 1,197.

Spinal Injury Hospital had 978 idle services, 579 for the Kenya School of Government, Kenya Civil Aviation Authority (489), Kenya Airports Authority (404), National Registration Bureau (338), and 309 at Kenya Wildlife Service.

Collectively, the agencies account for more than 15,000 idle services with auditors saying the situation makes it impossible to justify the expenditure.

Without active use, the onboarded services do not deliver convenience, efficiency or revenue, and the nearly Sh1 billion spent risks being seen as a sunk cost.

“In the circumstances, value for money could not be confirmed,” Gathungu said.

The revelations come amid concerns about the management of eCitizen, which handles billions of shillings in government revenue.

It also emerged that the National Treasury ran a Sh206 billion government payments system outside the law.

Gathungu raised concerns that Treasury allowed billions to sit in banks beyond agreed timelines.

The auditor is concerned that the system is still operating with weak controls, unclear ownership and in breach of the law in some key areas.

Despite processing over Sh206.5 billion in revenue, the Treasury - not the Kenya Revenue Authority (KRA), was effectively collecting national government revenue.

“This was contrary to the Public Finance Management Act, 2012, which states that the Kenya Revenue Authority shall be the collector of national government revenue,” the report states.

Auditors noted that the Government Digital Payments Unit, which runs the system, “was not formally designated as a receiver of revenue but operates based on Gazette Notices, Presidential Directive and Ministerial Instructions”.

The report also exposes how billions collected from Kenyans were not promptly remitted to government accounts.

At least Sh2.12 billion held in multiple bank accounts was transferred late, breaching contractual timelines agreed with partner banks.

“Collections… totalling Sh2,123,380,621 were transferred after two business days,” the audit states, pointing out that the Treasury failed to enforce penalties for the delays.

“Management did not provide evidence that penalty charges were computed or demanded,” auditors say, raising questions about whether the government is losing leverage, and possibly money, in its banking arrangements.

The audit also raises red flags over how Kenyans are charged to use the platform.

More than Sh908 million was collected through “convenience fees,” but the structure of those charges violated existing regulations.

“Convenience Fee was charged contrary to the Gazette Notice… Instead, the convenience fees were charged at Sh50 or 1 US Dollar per transaction,” the report says.

The law requires a prorated fee, not a flat charge, meaning citizens paying for low-cost services may have been disproportionately affected.

At the same time, the audit found inconsistencies in how the fees were applied.

“Some entities were charged… while other entities were not charged,” auditors note, pointing to unexplained disparities even among public universities.

Further scrutiny fell on payments to contractors, with Sh402 million paid for services before a key contract was signed.

“An amount of Sh402,035,542 was paid… before the signing of the novation agreement,” the report states, adding that value for money could not be confirmed.

The audit also found that the system still relies heavily on private vendors for core functions years after it was handed over to the government.

“Over reliance on the vendor… creates a single point of failure,” auditors warn.

Perhaps most alarming for a platform handling billions is the absence of a clear governance structure.

Auditors found no documented framework defining leadership, roles or accountability across the multiple agencies running eCitizen.

“In the absence of minutes, guidelines and other records… the framework… could not be confirmed,” the report states.

There were also no approved Standard Operating Procedures guiding critical processes such as revenue collection, reconciliation and user access.

“Management lacked documented Standard Operating Procedures (SOPs),” Gathungu noted, meaning the system runs without the necessary formalities.

The audit further reveals that two separate payment systems are running in parallel, with no clear integration plan.

“The system operations had two payment platforms… evidence of future plans for system integration… was not provided,” the report adds.

This has led to inconsistencies in how government entities are recorded and undermined the accurate reconciliation of revenues.

Auditors also flagged the absence of real-time monitoring tools, limiting visibility over funds flowing through the system.

“The absence of such monitoring tools limits transparency, oversight, and timely decision-making,” the report states.

In another breach of the law, the eCitizen unit was not subjected to an internal audit during the year under review.

Meanwhile, ordinary users continue to face service frustrations due to the lack of a structured help desk system.

“The platform lacked an established and structured help desk system… resulting in prolonged unresolved incidents,” auditors note.

The findings are likely to intensify scrutiny on the government’s digital revenue architecture, with eCitizen now central to how Kenyans pay for everything from passports to licences.

INSTANT ANALYSIS

With over Sh200 billion flowing through the system annually, the stakes are high. The Auditor-General’s report suggests that the risks go beyond inefficiency, and touch on legality, accountability and public trust at the core of government finance. This calls for urgent legal alignment, stronger oversight and tighter controls.