Friday, February 28, 2025 - Shadowy firms linked to the eCitizen platform have earned at least Ksh 1.45 billion, raising concerns over their influence on Government revenue collection.
Pesaflow, a private firm gazetted to collect payments for Government
services, has been billing the State between Ksh 100 million and Ksh 200
million per month.
This places its estimated annual earnings at Ksh 2.4 billion.
However, details regarding its ownership, contracts and
operations remain undisclosed.
Auditor-General Nancy Gathungu has flagged the firm’s role,
questioning its control over eCitizen without a proper backup system.
She has also faulted the Ksh 50 convenience fee imposed on
Kenyans seeking digital services, terming it unjustified.
Pesaflow is part of a consortium alongside Webmasters Kenya
and Olivetree Limited, all linked to software developer James Ayugi.
While Webmasters Kenya claims intellectual ownership of
eCitizen, the Government previously stated that the portal was handed over by
the International Finance Corporation (IFC).
Before Pesaflow’s entry, Webmasters had contracted Goldrock
Capital Ltd to manage funds flowing from eCitizen users to the Government.
A fallout led to Goldrock’s removal, paving the way for
Pesaflow’s appointment in 2017.
Pesaflow was registered at the height of Goldrock’s legal
battle with the government, Safaricom and Webmasters over control of mobile
money wallets.
Official records show that its largest shareholders Evid
Araka Sibi and Frank Lawrence Ochieng Weya each hold 3,000 shares.
Other stakeholders include Charles Wambani Sewe and Larry
Ochleng Agoro, who each own 2,000 shares.
All of them are linked to Webmasters, suggesting a possible
silent takeover.
Mr Ayugi has declined to explain his connection to both
Webmasters and Pesaflow.
He maintains that Webmasters handles technology, Pesaflow
manages payments and Olivetree Limited oversees communication services such as
bulk SMS alerts.
The Auditor-General has warned that the Government is heavily
dependent on private vendors for critical eCitizen functions.
She has raised concerns that over 15,000 public services
listed on the portal could be compromised in the event of a cyberattack.
The system’s support services are also under private control,
with Government agencies resorting to WhatsApp for assistance.
The audit further reveals that eCitizen’s helplines and email
correspondence are managed by the vendor, with no clear service-level
agreements in place.
The
Kenyan DAILY POST
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