Subsequent Wave: Kenyan authorities companies turning into pay-to-access schemes

First printed 09 March, 2025

Picture: eCitizen

The current revelations concerning the e-Citizen platform and its monetary irregularities increase considerations concerning the administration and way forward for digital authorities companies in Kenya. A minimum of KES 144 million ($1.1 million) collected via the platform is unaccounted for, including to its historical past of mismanagement. These points come up amid discussions on privatising key authorities features. The state nonetheless depends on Site owners Kenya, a personal agency, to handle the platform years after successful a court docket case over its possession. Site owners Kenya’s proposal to introduce premium fees for expedited companies fuels hypothesis that the federal government is contemplating a subscription-based mannequin that might restrict entry to public companies.

But some assume that this can be a good thought. The idea that non-public firms present authorities companies extra effectively and at a decrease value is flawed. This principle rests on the assumption that bureaucratic inefficiencies make authorities service provision costly, whereas non-public corporations, with higher administration and cost-saving strategies, can function extra successfully whereas making a revenue. Nonetheless, analysis exhibits in any other case. When important companies are privatised, governments usually fail to anticipate necessities, which may result in expensive contract modifications and unexpected bills. Companies prioritise revenue over public curiosity.

The e-Citizen case illustrates these dangers. Whereas digital platforms enhance effectivity, in addition they introduce new risks when managed by non-public entities centered on monetary acquire. Regardless of the federal government’s authorized victory, Site owners Kenya’s continued management over the platform raises considerations about contractual loopholes and the state’s capacity to keep up public management over vital digital infrastructure. The lacking KES 144 million highlights the shortage of transparency in managing public funds. These irregularities mirror previous corruption circumstances linked to e-Citizen, together with the KES 5.6 billion ($44 million) probe that implicated treasury officers and personal sector executives. Such incidents present the risks of permitting non-public corporations to regulate important authorities companies with out strict oversight.

Privatising public companies shifts incentives. In contrast to authorities businesses, which reply to political will and public demand, non-public corporations function for revenue. This usually results in cost-cutting that reduces service high quality, will increase charges, and excludes lower-income customers. For companies that operate as pure monopolies, comparable to banking, healthcare, and transportation, privatisation has traditionally elevated prices and decreased entry reasonably than improved effectivity. An identical sample is rising with e-Citizen, the place premium fees for expedited companies threat making a two-tiered system—those that can afford to pay for sooner service whereas others endure delays.

Premium fees increase elementary questions on authorities service supply. If applied, they might set a precedent for broader pay-to-access companies and contradict the precept that important authorities features ought to be accessible to all. This follows a worldwide pattern of public service monetisation, usually justified within the identify of effectivity. Within the U.S., as an example, healthcare privatisation has led to exorbitant prices, with company profiteering taking precedence over service high quality. Kenya’s strategy to e-Citizen appears headed in the same route, the place non-public corporations dictate entry and pricing.

One of many largest dangers of privatising authorities companies is the shortage of long-term dedication to public welfare. Whereas most Kenyans might disagree, authorities workers usually transcend their formal job descriptions to maintain companies working regardless of inefficiencies. Personal contractors, nonetheless, function strictly inside contract phrases, demanding additional compensation for extra work. This turns into problematic for important companies that require flexibility. A subscription mannequin for e-Citizen would worsen this, as non-public entities would prioritise income over equitable service entry.

Kenya’s gradual and inefficient public companies, comparable to these offered by the Nationwide Transport and Security Authority (NTSA), have fuelled arguments for privatisation. A go to to NTSA places of work can take a complete day, even with an appointment. Nonetheless, the answer is just not essentially privatisation however inner reforms addressing bureaucratic bottlenecks. Many inefficiencies stem from poor administration, outdated processes, and corruption, not an inherent incapability of the federal government to supply high quality companies. Handing companies to non-public corporations with out addressing these points merely shifts the issue reasonably than fixing it.

The federal government’s budgeting strategy additionally contributes to inefficiencies. The present mannequin incentivises departments to exhaust their budgets to keep away from future reductions. This merely encourages wastage. Whereas this inefficiency is commonly cited as a motive for privatisation, shifting to a profit-driven mannequin doesn’t essentially remedy the issue. As an alternative, it introduces new challenges, comparable to inflated service prices and exclusionary practices that drawback lower-income residents.

The proposal for premium fees on e-Citizen companies displays a broader pattern of creeping privatisation, the place important authorities features are subjected to market forces. If left unchecked, this might result in a situation the place entry to fundamental companies is determined by monetary capacity reasonably than citizenship rights.

Kenn Abuya

Senior Reporter, TechCabal

Thanks for studying this far. Be happy to e mail kenn[at]bigcabal.com, together with your ideas about this version of NextWave. Or simply click on reply to share your ideas and suggestions.