Members of Parliament have raised concerns over the continued involvement of a private company in managing the e-Citizen platform, despite a court ruling in favor of state ownership two years ago. During a session before the National Assembly Committee on Finance and Planning on Thursday, lawmakers questioned National Treasury officials on why the government had not yet fully taken over the platform, which processes over 120,000 transactions daily and collected Ksh.100.8 billion in the financial year 2023/24.
Bernard Ndung’u, the Director General of Accounting Services at the National Treasury, defended the arrangement, stating that while the private vendor had formally handed over the system following the court ruling, it was retained on contract to ensure continuity while the government developed its own system. He assured MPs that all funds generated through the platform were directly deposited into government accounts.
“The vendors handed over the system to the government after the court case, but they have been retained on contract to continue offering services while the government sets up its system,” Ndung’u explained.
Despite this assurance, lawmakers expressed dissatisfaction with the prolonged transition period. Committee chairman Kuria Kimani questioned the delay, stating that the government had ample time to implement its own system since taking control of the platform. Similarly, Turkana South MP John Ariko demanded full disclosure of the contract details between the government and the private vendor.
Ndung’u responded that the private company is compensated based on milestones achieved. “The convenience fee now goes to the government, which then uses it to service the contract,” he added.
Further scrutiny arose regarding why the Department of Immigration, rather than the National Treasury, was the custodian of the agreement, given that the Treasury is responsible for revenue collection. Ndung’u clarified that the Treasury Ministry has a dedicated unit to monitor all transactions on the platform.
This revelation follows an audit by Auditor General Nancy Gathungu, who last year warned that the government had limited control over the platform and continued to rely on the private vendor for critical functions. Gathungu’s report highlighted risks such as potential revenue leakage, lack of accountability, system downtimes, and security vulnerabilities.
In light of these concerns, MPs directed Treasury officials to present full contract details next week, aiming to ensure transparency and accountability in the management of the vital government service platform.
