A major investigative report has exposed what is being described as one of the largest financial scandals linked to Kenya’s digital governance systems, with billions of shillings allegedly diverted from the eCitizen platform into private accounts over several years.
The investigation, aired by KTN News, details how funds collected through the government’s online services portal were systematically channeled away from the National Treasury through unauthorized arrangements involving private entities.
Drawing on internal Treasury documents, bank records, and whistleblower accounts, the report outlines a complex network of financial transactions that remained undetected for years.
At the center of the findings is Pesaflow Limited, a private firm accused of operating an unapproved account at a local commercial bank.
According to the investigation, the account received large volumes of public revenue, including millions of dollars and tens of millions of shillings, funds that were meant to be remitted directly to government accounts.
The account reportedly operated outside the list of officially sanctioned Treasury collection channels.
The exposé further identifies several other companies, including Goldrock Ltd, Olive Tree Media, Webmasters Kenya, and Electronic Citizen Solutions, which allegedly acted as intermediaries in the collection of public funds.
These entities have since been summoned by Parliament’s Public Accounts Committee to clarify their roles in the transactions.
Investigators also uncovered evidence suggesting that some contractual agreements used to justify the arrangements were backdated, raising questions about attempts to legitimize irregular activities after concerns had already been raised.
Internal correspondence cited in the report indicates that warnings from auditors were not acted upon in time, allowing the scheme to continue.
The role of senior government officials has also come under scrutiny, with claims that certain approvals enabled the continuation of the payment structures.
Treasury Principal Secretary Dr Chris Kiptoo is reported to have intervened to freeze the Pesaflow account once it was identified, but by that point, significant sums had already been transferred.
Further complicating the matter, the investigation traces part of the money trail to offshore accounts, suggesting that some of the funds may have been moved beyond Kenya’s immediate jurisdiction.
This has raised concerns about the effectiveness of financial oversight mechanisms and anti-money laundering safeguards.In the aftermath of the broadcast, calls for accountability have intensified, with legal experts and anti-corruption bodies urging swift action.
Pressure is mounting on investigative agencies, including the Directorate of Criminal Investigations and the Office of the Director of Public Prosecutions, to launch comprehensive probes and pursue those implicated.
Parliament is also expected to play a central role, as the Public Accounts Committee moves to question the named companies and individuals. The unfolding developments have sparked widespread public concern, with many Kenyans demanding transparency and answers over how funds intended to streamline government services could be diverted on such a scale.
