| Clause 2 | “Act” means the Public Finance Management Act; | The definition imports the parent statute by reference. |
| Interpretation | | |
| Clause 2 | “accounting officer” has the meaning assigned to it under section 2 of the Act; | The definition in the Act clearly identifies the officers responsible for financial management and accountability across national government entities, county governments, the Judiciary, and Parliament. |
| Interpretation | | |
| Clause 2 | “Cabinet Secretary” has the meaning assigned to it under section 2 of the Act; | The definition cross-references section 2 of the Public Finance Management Act and refers to the Cabinet Secretary responsible for matters relating to finance. |
| Interpretation | | |
| Clause 2 | “county government entity” has the meaning assigned to it under section 2 of the Act; | The definition appropriately captures departments, agencies, and other bodies within a county government and also incorporates entities formally designated as county government entities. |
| Interpretation | | |
| Clause 2 | “national government entity” has the meaning assigned to it under section 2 of the Act; | The definition appropriately covers all national government departments and agencies, as well as entities formally designated under the Act. |
| Interpretation | | |
| Clause 2 | “onboarding” means the process of identifying, digitalizing, and integrating government services onto the System; | The definition clarifies the meaning of a technical term and provides a useful foundation for implementation. |
| Interpretation | | |
| Clause 2 | “payment service provider” has the meaning assigned to it under the National Payment System Act; | The National Payment System Act defines a payment service provider to mean a person or a company or organization who provides an electronic system to send, receive, store or process payments or related services. |
| Interpretation | | |
| Clause 2 | “System” means the e-Citizen System established under regulation 5. | Clause 5 establishes a centralized system for the access to and payment for services offered by a national or county government entities. |
| Interpretation | | |
| Clause 3 | (1) These Regulations shall apply to— | The clause extends the application of the Regulations to both national and county government entities and to persons accessing services through the System. This application creates a unified operation system. |
| Application | (a) a national government or county government entity that is required to onboard its services in the System; and | |
| (b) any person desirous of accessing the services of a national government or county government entity is onboarded in the System. | |
| (2) The provisions of these Regulations shall govern the establishment, operation, and management of the System. | |
| Clause 4 | The purpose of these Regulations shall be to— | The purpose aligns with sections 12 and 15 of the Public Finance Management Act, which mandates the National Treasury to promote transparency, accountability, and sound financial management. |
| Purpose of the Regulations | (a) establish a regulatory framework for the governance, management, and operation of the System; | |
| (b) promote transparency, accountability, and compliance in the management and operations of the System; and | |
| (c) ensure the efficient coordination of access to services offered by the national and county government entities under the System. | |
| PART II— ESTABLISHMENT OF THE E-CITIZEN SYSTEM | |
| Clause 5 | (1) There is established a system for the access to and payment for services offered by a national or county government entity and financial reporting of the payments made to or received by the national and county government entities to be known as the e Citizen System. | The establishment of a centralized digital platform for government service payments and financial reporting is a positive development that may significantly enhance revenue accountability, auditability, and transparency within public finance management. |
| Establishment of the System | (2) The System shall be the official government online portal through which payments for onboarded public services are made digitally and where all collections and settlements of revenue are made. | |
| (3) The System shall operate as the sole government-designated online portal for the collection and settlement of all revenues received for services offered by a national government or county government entity and accessible through the System. | |
| (4) Every national government or county government entity shall onboard its services and payment processes onto the System. | |
| Clause 6 | The main objectives of the System shall be to facilitate— | This clause provides a sound basis for the System. By digitizing payments, the System can improve service delivery and convenience for citizens and businesses, provided data collection and reporting comply with the Data Protection Act. |
| Objectives of the System | (a) access to and payment for services offered by a national or county government entity; | |
| (b) data collection and reporting for System enhancement and optimization; | |
| (c) transparent financial management and standard financial reporting as contemplated by Article 226 of the Constitution. | |
| Clause 7 | (1) The System shall comprise— (a) an identity management platform; | Clause 7 sets out the System’s technical architecture and core capabilities. |
| Components and capabilities of the system | (b) payment aggregation and revenue management platforms; and | It establishes a comprehensive framework for interoperability, integration, identity verification, payment processing, revenue management, and data exchange. |
| (c) an interoperability and integration component to facilitate secure integration, cooperation, and data exchange with ministries, departments, agencies, county governments and other public entities for service delivery and public financial management. | The inclusion of audit trails, authentication mechanisms, and role-based access controls is particularly useful for accountability. |
| (2) The System shall have the following capabilities— | |
| (a) create users for the System; (b) allow users to access services from various devices and interfaces; | |
| (c) provide for a unified identification and authentication system that enables users to access multiple services within the System; | |
| (d) provide users with approved payment channels and allow users to make payments for the services through the chosen channel; | |
| (e) enable secure integration with systems operated by ministries, departments, agencies, county governments, state corporations, and other public entities; | |
| (f) facilitate secure and controlled exchange of data between the System and other government platforms through standardized interfaces and protocols; | |
| (g) provide application programming Interfaces and service interfaces to enable automated communication and interoperability with external government systems; | |
| (h) support integration with national registries and identity verification systems for authentication and validation of users and entities; | |
| (i) allow validation, synchronization, and updating of records across connected government systems to ensure data accuracy and consistency; (j) provide mechanisms for secure authorization, role-based access, and controlled access to shared data and services; | |
| (k) maintain logs and audit trails for all integrations, transactions, and data for accountability and exchanges compliance; | |
| (l) settle all revenue transactions to the respective government institutions, within the agreed timelines; | |
| (m) provide secure databases to store user data, service records, transaction histories, and redundancy systems; | |
| (n) generate comprehensive records and statements of all transactions, an audit trail for payments made through the System; and | |
| (o) allow national and county government entities to reconcile revenue transactions in line with the reporting and accounting standards. | |
| Clause 8 | (1) The System shall be hosted, administered, and maintained by the National Treasury. | Assigning responsibility for administration of the System to the National Treasury promotes centralized oversight. Centralized administration by the National Treasury may improve coordination, standardization, and accountability. |
| Administration of the system | (2) The National Treasury shall, in consultation with the ministry responsible for matters relating to information technology— | |
| (a) maintain the integrity and security of the System; | |
| (b) ensure integration of the System with other government systems and authorized payment channels or systems; | |
| (c) ensure business continuity and disaster management in relation to the System; | |
| (d) developed the System in line with the user requirements and best industry practices; and | |
| (e) conduct regular maintenance and updates to the System to ensure efficient and secure transactions conducted under the System. | |
| (3) The National Treasury shall— (a) be responsible for the hosting and core infrastructure of the System; | |
| (b) ensure that information maintained in the System is confidential and is used only for the purpose to which it is intended in line with the Data Protection Act and any other related legislation; | |
| (c) ensure regulated access to reports generated by the System to the public and other stakeholders; | |
| (d) develop operational guidelines and standard operating procedures for the System in liaison with relevant stakeholders; | |
| (e) provide technical support for the System across the governments; National and county | |
| (f) build capacity for public entities for the effective use of the System; | |
| (g) onboard payment service providers in conformity with the existing laws and regulations governing the financial sector; | |
| (h) provide secretariat to the Steering Committee and the Technical Committee established under these Regulations; and | |
| (i) conduct regular performance reviews and monitor payment service providers under the System to ensure compliance with these Regulations. | |
| Clause 9 | The Principal Secretary responsible for the coordination of e-Citizen services shall— | The assignment of responsibility for onboarding government services to the Principal Secretary responsible for the coordination of e-Citizen services establishes a clear institutional framework and central point of accountability for implementation of the System. |
| E-Citizen services | (a) be responsible for onboarding services to the System; | |
| (b) review, validate, and advise on services submitted for onboarding by a public entity; | |
| (c) build capacity for the public entities on board in the System for the effective use of the System; | |
| (d) have a mechanism for handling complaints and feedback on services offered in the System; and | |
| (e) sensitize the public on the use of the System. | |
| PART III—GOVERNANCE OF THE SYSTEM | |
| Clause 10 | (1) For purposes of this System, the Cabinet Secretary shall establish a Steering Committee of the System. | |
| Steering Committee | (2) The Steering Committee shall consist of the following members— | The constitution of the Steering Committee reflects the inclusion of representatives from both levels of government and promotes intergovernmental coordination. |
| (a) the Principal Secretary responsible for matters related to finance, who shall be the chairperson; | |
| (b) the Principal Secretary of the State Department responsible for matters related to e-Citizen services; | |
| (c) the Principal Secretary of the State Department responsible for information technology; | |
| (d) the Principal Secretary of the State Department responsible for devolution; | |
| (e) the Solicitor General; and | |
| (f) the Chief Executive Officer of the Council of Governors. | |
| (3) The Cabinet Secretary may co-opt into the membership of the Steering Committee any person whose knowledge and skills are considered necessary for the effective discharge of the functions of the System. | |
| Clause 11 | 11.The Steering Committee shall— | The functions assigned to the Steering Committee are appropriate and provide strategic oversight of the System. |
| Functions of the Steering Committee. | (a) ensure implementation of strategic guidelines and policy direction on onboarding of government services onto the System; | |
| (b) oversee and regulate the digital payment processes through the System payments gateway; | |
| (c) recommend to the National Treasury for approval, such bank accounts and payment channels as are necessary to operate the System | |
| (d) monitor the performance of the national or county government entities offering a service on the System; and | |
| (e) coordinating the linkages between the National Government and county governments. | |
| Clause 12 | (1) The Cabinet Secretary shall constitute a multi-agency technical committee to provide technical guidance on the System. | The establishment of a multi-agency technical committee is a measure that provides a structured mechanism for technical oversight, coordination, and implementation of the System. The functions assigned to the Committee are comprehensive and appropriately cover key areas. These functions are critical to ensuring that the System operates efficiently, securely, and consistently across national and county government entities. |
| Multi-agency Technical Committee. | (2) The Technical Committee shall— | |
| (a) review and recommend policies, strategies, and standard operating procedures related to the System; | |
| (b) provide technical guidance on key projects and programs under the System; | |
| (c) advise the Steering Committee on technical matters related to the System; | |
| (d) develop technical frameworks for interoperability between the System and other government platforms; | |
| (e) provide oversight on the technical onboarding process for services, including infrastructure readiness for the national and county government entities; | |
| (f) ensure technical compliance of the System with national ICT standards, including cybersecurity, uptime, and service availability; | |
| (g) define and monitor Service Level Agreements with payment service providers and the national and county government entities; (h) approve services required to be onboarded to the System; the (i) review periodic audit reports generated by System and recommend corrective actions. (3) The Technical Committee shall report to the Steering Committee. | |
| (4) The State Department responsible for matters related to the coordination of e-Citizen services shall provide secretariat services for the Technical Committee. | |
| Clause 13 | 13. (1) The Technical Committee shall approve any service that is required to be onboarded in the System. | The clause establishes an important framework for the onboarding of services into the System by assigning responsibility to the technical committee for approving services and developing the scope, procedures, and requirements for onboarding. |
| Criteria for recognition of Services. | (2) The Technical Committee shall develop the scope, procedure, and requirements for each service that is required to be onboarded in the System. | |
| PART III— GENERAL PROVISIONS | |
| Clause 14 | 14. The funds of the System shall consist of— | This clause is important as reliable funding is critical for any office. The proposed funding framework provides multiple sources of support for operation of the System. |
| Funds | (a) monies appropriated by the Parliament; | |
| (b) payments or property due to the System incidental to its functions | |
| (c) grants, donations, bequests, or other contributions made to the System; and | |
| (d) the convenience fee payable to the System. | |
| Clause 15 | (1) The System shall be the collector of revenue on behalf of a national or county government entity whose services are onboarded into the System. | The clause establishes a clear framework for the collection of government revenue through the System and appropriately preserves the authority of national and county government entities to determine the fees chargeable for services under their respective mandates. This approach promotes consistency in revenue collection, enhances transparency, and supports the development of a centralized and auditable system for public financial management. |
| Collection of revenue. | (2) The fees chargeable for any service onboard in the System shall be determined by the national or county government entity responsible for offering that service. | |
| (3) The Cabinet Secretary shall prescribe the payment channels for the collection of revenue under the System. | |
| (4) There shall be a convenience fee charged for some service offered by a national or county government entity onboarded in the System. | |
| (5) The convenience fee charged under sub regulation (4) shall be as set out in the Schedule. | |
| Clause 16 | The System shall enable— | The clause establishes the core financial functions of the System by enabling the collection, processing, and remittance of revenues generated from government services. It ensures that funds collected through the System are transmitted to the relevant national or county government entity and provides a mechanism for charging and collecting convenience fees associated with the use of the System. |
| Settlement on the System. | (a) settlement of revenue collected through the System to the national or county government entity offering a service to which the money was paid for; and | |
| (b) collection of the convenience fee related to a service offered by a national or county government entity onboarded in the System. | |
| Clause 17 | (1) All payments made for services offered by a national or county government entity and onboarded in the System shall be processed electronically through the payment service providers integrated with the System. | This regulation requires the System to generate a Government of Kenya electronic receipt for every transaction. This is important for accountability. |
| Payments and issuance of receipts. | (2) The System shall generate and issue a government of Kenya electronic receipt for every transaction processed through the System. | |
| Clause 18 | (1) A person may apply for a refund under the System where— (a) a service paid for under the System was not rendered; | The introduction of a refund mechanism is a safeguard that promotes fairness, accountability, and public confidence in the System. The grounds identified address some of the most common circumstances under which members of the public may suffer financial loss while accessing government services. |
| Refunds | (b) payment was made twice for the same service; | |
| (c) payment was made to the wrong payment service provider. (2) Any request for a refund made under sub regulation (1) shall be processed by the respective national or county government entity responsible for the service related to the refund request in accordance with the entity’s finance and accounting policy. | We propose the regulation to specify processing periods for the refund applications. |
| Clause 19 | (1) The National Treasury shall ensure that the System is subjected to regular audits to ensure compliance with the relevant legal and regulatory requirements. | This clause seeks to strengthen accountability, transparency, and integrity in the operation of the System by requiring regular audits, maintenance of audit trails, and periodic review of audit reports. The provision is important in ensuring that transactions and activities undertaken through the System are traceable and capable of verification, thereby reducing the risk of fraud. |
| System Audit | (2) The Systems shall be required to maintain an audit trail that documents any changes, access, and processing of electronic documents in the System for purposes of ensuring transparency and accountability. (3) The System shall generate periodic audit reports that the Technical Committee shall review to identify and resolve any discrepancies and operational issues noted in the System. | |
| Clause 20 | (1) The data collected and maintained under the System shall be handled, retained, and disposed of in accordance with the provisions of the Access to Information Act, the Data Protection Act, and any other related legislation. | The reference of the Data Protection Act is necessary considering that the system processes personal sensitive data of millions of Kenyans. |
| Management of data. | (2) Any electronic records maintained under the System shall be managed in compliance with established standards for security, accuracy, and accessibility in accordance with the provisions of the Act. | |
| Clause 21 | (1) Every transaction, record, and process carried out through the System shall have the same legal effect as if performed through manual or in person processes unless otherwise provided under a different law. | This regulation provides legal recognition to electronic transactions and documents generated through the system. This is consistent with the Evidence Act and Information and Communications Act which recognize the legal effect of electronic evidence. |
| Management of data. | (2) An electronic document issued by the System, including any license, permit, certificate, receipt, and notice, shall be deemed official and legally binding. | |
| Clause 22 | (1) Every national and county government entity whose services have been onboarded in the System shall comply with these Regulations within twelve months of publication of these Regulations in the Gazette. | The proposed twelve-(12) month compliance period provides a reasonable basis for migration to the new framework. |
| Transition | (2) Every national and county government entity offering services under the System shall, upon publication of these Regulations in the Gazette, cease to operate any revenue bank accounts. | |
