The eCitizen Scandal: Kenya’s Billion-Shilling Digital Heist

eCitizen was supposed to revolutionize Kenya’s access to public services. It promised to end long queues, kill corruption, and simplify lives through digitization.

But behind the slick interface lies one of the most shocking scams in modern Kenya. Billions have vanished.

The same players—under different names—have stayed in charge. And government silence has fueled suspicion.

From Webmasters to Goldrock Capital and Pesaflow, a group of insiders may have hijacked Kenya’s digital future for personal gain.

This is the eCitizen Scandal—a tale of tech, theft, and betrayal.

Ayugi’s bold statement in 2014 foreshadowed the scandal. He posted on social media that he’d make a billion shillings in five years. Nearly a decade later, with the juicy contracts Webmasters secured, he may have been right. [Photo: Nation]

Inside the eCitizen Scandal: How a National Digital System Became a Private Cash Cow

eCitizen launched as a public digital platform to centralize access to government services. It was built with Sh70 million from the World Bank. But somewhere along the way, public ownership faded. Private hands took over.

At the heart of the scandal sits James Ayugi, CEO of Webmasters Kenya and Webmasters Africa. His companies built the original eCitizen system.

Then, in a shocking twist, they demanded Sh1.5 billion from the government to hand it over—claiming intellectual property rights.

This claim makes little sense. The platform was created for public use with donor funds. So how did a public portal suddenly become a private asset?

Ayugi’s bold statement in 2014 foreshadowed the scandal. He posted on social media that he’d make a billion shillings in five years. Nearly a decade later, with the juicy contracts Webmasters secured, he may have been right.

The deal was never clean. The government failed to clarify ownership from the start—either by incompetence or design.

This allowed Ayugi and his network to sink their claws into a vital national resource. The deeper you dig, the murkier it gets.

Goldrock Capital and The Questionable Middleman

To manage eCitizen payments, Webmasters outsourced the job to Goldrock Capital. Citizens sent money for passport applications, business registrations, and more.

Goldrock was supposed to forward these funds to the government’s account at KCB. But the truth was far from clean.

In 2017, the Treasury uncovered that Goldrock had no license to handle public money. Worse, millions—Sh127.8 million—were stuck in mobile wallets like Paybill 206206. Suspicion of fraud exploded.

Shockingly, no one at Goldrock was held accountable. There were no prosecutions. No arrests. Instead, the government made a quiet move—it replaced Goldrock. But the replacement wasn’t really new.

Pesaflow: New Name, Same Faces

Enter Pesaflow. Registered in August 2017, during Goldrock’s legal troubles, Pesaflow looked like a clean slate. But it wasn’t.

A closer look showed that Pesaflow’s directors were all ex-Webmasters Africa staff: Evid Araka Sibi, Frank Weya, Charles Sewe, and Larry Agoro. The same crew. Just a different name.

Without any open tender or public bidding process, the government appointed Pesaflow as the new payment processor.

In short, when Goldrock got too hot, the insiders regrouped under a new company, and the cash continued to flow.

This is the blueprint of a classic shell game. When exposure hits one entity, the masterminds simply switch names, stay in business, and keep milking taxpayers.

Even today, Pesaflow remains shrouded in secrecy. There’s no transparency about how much money flows through it or where the money goes before it reaches public coffers.

Why the Government is Silent on eCitizen Scandal

President Ruto’s administration has stayed largely mum about the scandal. That is, until former Deputy President Rigathi Gachagua recently accused Ruto directly on KTN of minting billions through the eCitizen platform.

Gachagua made bold claims:

• That eCitizen doesn’t belong to the government

• That billions are being pocketed

• That the platform is controlled by unknown entities

While Gachagua did not name names or prove ownership links, his outcry added fuel to a scandal that the public and media have started to investigate.

Despite the red flags, despite court records, and despite public money being at stake, no official audit has been published, and no criminal case has been concluded. Is this silence protection, or is it complicity?

A National Shame Hiding in Plain Sight

The eCitizen scandal is a slap in the face to every Kenyan taxpayer. What started as a promise of digital transformation has become a tool for elite theft.

From Webmasters to Goldrock Capital to Pesaflow, the same actors have danced around accountability. And the government has let them.

Billions have passed through this system. Who owns it? Who benefits? And why haven’t we followed the money?

If Kenya wants to fight corruption, it must start with transparency in its digital backbone. Anything less means the thieves will keep dancing—and we’ll keep paying.