First published 09 March, 2025
Image: eCitizen
Recent concerns have been raised about the management and future of digital government services in Kenya following financial irregularities on the e-Citizen platform. Approximately KES 144 million ($1.1 million) collected through the platform is unaccounted for, indicating a history of mismanagement. There are discussions about potentially privatizing key government functions, with a private firm, Webmasters Kenya, still managing the platform despite a legal battle over its ownership. The firm’s proposal to introduce premium charges for expedited services has sparked speculation about a possible subscription-based model that could restrict public service access.
While some view privatization as a solution for more efficient and cost-effective service provision, research suggests otherwise. Privatizing essential services can lead to unforeseen expenses and modifications as governments may not anticipate all requirements. This prioritization of profit over public interest by private entities can pose risks, as seen in the case of e-Citizen. The platform’s control by a private firm raises concerns about contractual loopholes and the government’s ability to maintain oversight over critical digital infrastructure. The missing KES 144 million further underscores the lack of transparency in managing public funds and the dangers of inadequate oversight in allowing private entities to control vital government services.
Privatization of public services can alter incentives, with private firms focusing on profit rather than public welfare. This shift can lead to reduced service quality, increased fees, and exclusion of lower-income individuals. In the case of e-Citizen, the introduction of premium charges for expedited services could create a two-tiered system, disadvantaging those unable to afford faster service.
The proposal for premium charges on e-Citizen services raises concerns about the accessibility of essential government functions. Implementing such charges could set a precedent for pay-to-access services, contradicting the principle of universal accessibility to government services. This trend towards public service monetization echoes global patterns where privatization has led to higher costs and compromised service quality.
Privatizing government services may also lack a long-term commitment to public welfare, as private contractors often prioritize revenue and contractual terms over equitable service access. Rather than solely resorting to privatization as a solution for inefficiencies in public services, internal reforms addressing bureaucratic bottlenecks and corruption should be considered.
The current budgeting model that encourages departments to exhaust their budgets to avoid reductions contributes to inefficiencies, leading to wastage. Transitioning to a profit-driven model through privatization may not necessarily resolve these inefficiencies and could introduce new challenges such as inflated costs and exclusionary practices.
The proposal for premium charges on e-Citizen services is part of a broader trend of privatization, subjecting essential government functions to market forces. This shift could jeopardize universal access to basic services, making financial ability a determinant of service access rather than a matter of citizenship rights.