Investigations
Pesaflow Among Shadowy Firms Siphoning Billions From eCitizen

Shadowy firms have pocketed over Ksh 1.45 billion through Kenya’s eCitizen platform, sparking concerns about their grip on government revenue collection.
Pesaflow, a private company authorized to collect payments for government services, bills the state between Ksh 100 million and Ksh 200 million monthly.
This amounts to an estimated Ksh 2.4 billion annually. Yet, details about its ownership, contracts, and operations remain shrouded in secrecy.
The Rise of Pesaflow and Its Associates
In 2017, amid a legal tussle over control of mobile money wallets, Pesaflow emerged as a key player in processing payments for eCitizen.
Before Pesaflow’s involvement, Webmasters Kenya had contracted Goldrock Capital Ltd. to manage funds from eCitizen users for the government. A fallout led to Goldrock’s removal, paving the way for Pesaflow’s appointment.
Pesaflow operates alongside Webmasters Kenya and Olivetree Limited, forming a consortium linked to software developer James Ayugi.
While Webmasters Kenya claims intellectual ownership of eCitizen, the government previously stated that the International Finance Corporation (IFC) handed over the portal.
Ownership and Operations in the Shadows
Official records reveal that Pesaflow’s 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, each owning 2,000 shares. All are linked to Webmasters, suggesting a possible silent takeover.
Despite these connections, Mr. Ayugi has declined to explain his relationship with both Webmasters and Pesaflow.
He maintains that Webmasters handles technology, Pesaflow manages payments, and Olivetree Limited oversees communication services, such as bulk SMS alerts.
Auditor-General Raises Red Flags
Auditor-General Nancy Gathungu has flagged Pesaflow’s role, questioning its control over eCitizen without a proper backup system.
She also criticizes the Ksh 50 convenience fee imposed on Kenyans seeking digital services, calling it unjustified.
Dependence on Private Vendors
The Auditor-General warns that the government heavily relies on private vendors for critical eCitizen functions.
Over 15,000 public services listed on the portal could be compromised in a cyberattack. Support services are also under private control, with government agencies resorting to WhatsApp for assistance.
Lack of Transparency and Oversight
The audit reveals that eCitizen’s helplines and email correspondence are managed by the vendor, with no clear service-level agreements in place.
This lack of transparency and oversight raises concerns about the security and reliability of the platform.
In conclusion, the involvement of shadowy firms in managing eCitizen raises significant concerns about transparency, security, and the government’s reliance on private entities for critical public services. Addressing these issues is crucial to ensuring the integrity of Kenya’s digital service delivery.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
-
Investigations2 weeks ago
A Pattern Emerges: How Somali-Led Cartels Are Fueling Kenya’s Real Estate Boom With American Fraud Money
-
News4 days ago
Former Nairobi CEC Newton Munene Found Dead as Sonko Alleges Cartel Involvement
-
Business2 weeks ago
Lea Maize Flour Producer Admits to Adding Chemicals to Make Ugali ‘Balloon’ as Experts Issue Warnings
-
News2 weeks ago
US Charges Kenyan with Stealing Sh83 Billion from USAID-Funded Project at KEMSA
-
Investigations1 week ago
Financial Watchdog Flags Sh600 Million Sham SHA Payments
-
Grapevine2 weeks ago
Governor Mutula Kilonzo Embroiled in Dramatic Fallout With Baby Mama
-
Grapevine1 week ago
Robert Burale’s Ex-Wife Spills All The Tea – “I Found Gay Porn on His Laptop, Another Woman Paid For Our Honeymoon!
-
News1 week ago
CASH FOR LICENSE: NTSA Director Under Fire As Infighting Exposes Extortion Racket in Driving Schools