Auditor flags Sh1.36billion PCF collections outside e-Citizen platform
A fresh audit report has exposed irregular revenue collection practices at the Policyholders Compensation Fund (PCF), raising fresh concerns over transparency in government agencies.
The Auditor-General has flagged the fund for collecting Sh1.36 billion in levies and penalties outside the government’s official e-Citizen platform, contrary to Treasury directives aimed at enhancing accountability.
According to the audit, the collections were made outside the mandatory digital system despite a clear directive requiring all State agencies to channel revenue through eCitizen.
The policy, issued through Treasury Circular No. 02/2024, sought to seal loopholes in public finance management and ensure real-time tracking of government income.
“All collections were not done on the e-Citizen platform contrary to Treasury policy measures,” the Auditor-General noted in the report.
Former Kamukunji and EALA Member of Parliament Simon Mbugua serves as the Board of Trustee Chairperson while former Nairobi County Finance and Economic Planning Chief Officer Mohamed Abdi Sahal is serving as the Managing Trustee at PCF.
The findings place the PCF, a state corporation mandated to compensate policyholders in the event of insurance company failures, at the centre of growing scrutiny over compliance with financial regulations.
The report indicates that by bypassing the eCitizen platform, the fund operated outside established safeguards designed to promote transparency and curb revenue leakages.
The audit raises questions about how the Sh1.36 billion was processed and whether proper oversight mechanisms were followed.
The revelations come at a time when the government has been pushing for full digitisation of revenue collection systems to enhance efficiency and accountability.
The e-Citizen platform, used by millions of Kenyans to access and pay for public services, is a key pillar of this reform agenda.
Auditor-General Nancy Gathungu has in recent reports consistently raised concerns over non-compliance by State agencies, warning that failure to adhere to Treasury guidelines undermines efforts to safeguard public funds.
The audit is likely to pile pressure on oversight bodies to enforce stricter compliance and ensure that all government-linked entities adhere to established financial systems.
It also adds to a series of recent concerns about revenue management within public institutions, with lawmakers and accountability agencies increasingly calling for tighter controls and full adoption of digital payment platforms.
