MPs have raised serious concerns in the E-Citizen consultancy agreement, saying the government has signed a deal that favors suppliers over national interests. The contract that underpins Kenya’s digital payment system is now under intense scrutiny due to multiple oversight failures and legal ambiguities.

During a session with the National Assembly’s Administration and Internal Affairs Committee, Immigration and Citizen Services PS Dr Bellio Kipsang was asked to explain the negotiation process of the contract but he failed. Lawmakers were not pleased with the lack of critical documents and transparency in the deal.

E-Citizen Contract Loopholes

The E-Citizen system handles hundreds of millions daily, yet the contract was signed by junior officers without the involvement of the Attorney-General or key Cabinet Secretaries—namely those from the National Treasury and the Interior Ministry.

“You can’t have an agreement of trillions going through without the signature of the attorney-general, the Cabinet secretaries of the National Treasury and the Interior Ministry. It’s scary,” said one committee member anonymously.

The contract has no start and end dates, and the vague timelines can be exploited. Even worse, the agreement allows suppliers to withdraw all proprietary infrastructure, including technical and software resources, in case of contract termination—killing government services.

Contract Signatories and Accountability Gaps

The contract was signed by Stanley Kamanguya, CEO of the ICT Authority, and witnessed by senior ICT officials. Representing the developers’ consortium—ECS LLP (Electronic Services Solutions)—were:

  • James Ayogo, CEO of Webmasters Kenya Ltd

  • Evid Araka, Director at Pesaflow Ltd

  • James Kabiru, Director at Olive Tree Media Ltd

There is no legal and financial accountability at the highest level of government. MPs asked how such a high-stakes deal was done without checks and balances.

“Kenyans want to know where their money goes,” said Kisumu West MP Rozzah Buyu, criticizing the PS for presenting documents just before the meeting.

Structure of the Consortium Behind E-Citizen

ECS consortium has three private companies: 

  • Webmasters Kenya Ltd – will provide platform support, maintenance and customer service.

  • Pesaflow Ltd – will handle all electronic payments, integration and compliance with the National Payment System Act (2011).

  • Olive Tree Media Ltd – will provide bulk messaging, security support and revenue mobilization.

Despite the importance of this platform in national governance, the committee is concerned that the contract allows ECS to control national data and infrastructure with minimal government oversight.

Broader Implications and Reform

This comes at a time when Kenyans are crying foul over opaque revenue flows from e-government platforms and questions still linger over funds in foreign accounts as raised in previous parliamentary debates.

The committee is now demanding:

  • All negotiation records

  • Legal vetting documents

  • A revised contract with government representation