Who owns e-Citizen? Govt clarifies ownership amid growing public scrutiny

The government has moved to clarify the ownership structure of the e-Citizen online platform, a crucial digital portal providing a wide array of state services, following increasing public debate and scrutiny over its control.

In a statement released on Thursday, April 17, 2025, Government Spokesperson Isaac Mwaura asserted that the government retains full ownership of the e-Citizen platform.

However, he acknowledged a contractual agreement with Webmaster, a local technology service provider, for the platform’s management and technical upkeep.

“CLARIFICATION on e-Citizen Ownership!” Mwaura’s statement began, before elaborating on the government’s approach to procuring ICT services.

“The Government procures ICT services from various providers. For example, Oracle Corporation supplies the Integrated Financial Management Information System (IFMIS), while Microsoft provides supporting digital infrastructure.”

Addressing the specific concerns around e-Citizen, Mwaura stated;

“The Government fully owns the eCitizen platform but entered into a contractual agreement with Webmaster, a local service provider, to manage it. This system has been in a 10-year pilot phase as we build capacity and continuously enhance its functionality.”

The government’s clarification comes in the wake of significant scrutiny, including concerns raised by Auditor General Nancy Gathungu regarding the platform’s IT security and governance systems.

Gathungu had warned of potential privacy violations due to weak data protection controls and highlighted the government’s limited control over the system, raising concerns about the accountability of billions of shillings processed through it.

Mwaura acknowledged these concerns, stating, “We appreciate the concerns raised by the Auditor General and invite Kenyans to share their feedback as we work together to improve the platform.”

He also pointed to the government’s initiatives to bolster local technological capacity, including the establishment of innovation hubs.

“It’s also important to note that the Government has established an Innovation and AI Hub at the Kenya School of Government, alongside software and application development hubs at Konza Technopolis, officially launched by H.E. President Ruto,” Mwaura said.

Adding that; “As a nation, we continue to make steady progress in developing and embracing homegrown technologies and innovations.”

Last week, Gathungu warned that the platform had serious shortcomings in IT security and governance. A special audit revealed that e-Citizen could expose users to data breaches and privacy violations due to weak protection protocols.

The Auditor General also disclosed that the government had limited control over the platform’s operations, raising accountability concerns over billions of shillings processed through the system.

Contract details raise eyebrows

Webmasters Kenya, the firm behind e-Citizen, was awarded a contract on May 25, 2023, to support and maintain the platform for three years, in partnership with Pesaflow Limited and Olive Tree Media Limited.

Webmasters owns the software infrastructure of the platform. Pesaflow facilitates real-time payment settlements and data analytics, while Olive Tree Media manages mobile applications and USSD/SMS services.

James Ayugi is the founder and CEO of Webmasters, the firm that built the e-Citizen platform.

Although the government has maintained that it owns e-Citizen, parliamentary documents tabled before the National Assembly’s Departmental Committee on Administration and Internal Security on April 15, 2025, painted a different picture.

The contract terms allow the three firms to retain proprietary rights, with the legal authority to pull out and withdraw the platform’s infrastructure if the agreement is terminated – triggering serious concerns over access control and digital sovereignty.

Lawmakers from two committees have since launched separate investigations into the matter.

MPs warn of potential national security risk

Homa Bay Town MP Peter Kaluma described the revelations as a potential threat to national security and financial stability.

“This is very scary. The government has put itself in a vulnerable position. If this contract stands, the suppliers can switch off the entire system and walk away,” Kaluma warned.

Lari MP Mburu Kahangara also questioned past assurances by government officials.

“We’ve repeatedly sought clarity from the ministry, and we were told the platform is state-owned. But the contract tells a different story,” he said.

The committee further flagged governance issues after learning that the contract wasn’t signed by the ICT Principal Secretary, the official accounting officer for the ministry, but by the ICT Authority CEO Stanley Kamanguya.

“Where is the PS’s signature? This is a contract of significant magnitude. Why are the signatories limited to a CEO? It raises serious questions about governance and accountability,” Saku MP and committee’s Vice Chair Dido Ali Raso noted.

Committee Chair Gabriel Tongoyo criticised the ICT Ministry for withholding the document for over two months.

“This document should have been availed much earlier. The delay appears intentional, as though someone was trying to avoid scrutiny. We will not tolerate such evasiveness,” he said.

e-Citizen management

In a separate incident on February 21, 2025, MPs expressed shock upon learning that the platform is still managed by a private company, despite the government winning a court battle over its ownership two years ago.

Appearing before the National Assembly’s Finance and Planning Committee, National Treasury officials said the government has yet to build its own system, hence the continued reliance on the private vendor.

“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,” Bernard Ndung’u, Director General of Accounting Services at the Treasury, said.

Ndung’u assured the committee that all revenues go directly into government accounts and that payments to the vendor are based on deliverables.

As of October 2024, Treasury CS John Mbadi revealed the platform processed approximately 120,000 transactions daily and collected Ksh100.8 billion during the 2023/24 financial year.

Committee chair Kuria Kimani and Turkana South MP John Ariko raised concerns about the delayed transition to full government control and questioned why the Department of Immigration, and not the Treasury, held custody of the contract.

The MPs directed Treasury officials to submit complete contract details at the next sitting.