The High Court has certified as urgent a petition seeking to stop the government from migrating all digital payment systems to one platform after two petitioners challenged the directive arguing that it is unconstitutional.
Justice Hedwig Ong’udi certified the case as urgent and directed Fredrick Ogola and lawyer Benard Odero Okello to serve the court papers to CS Treasury Njuguna Ndung’u, his ICT counterpart Eliud Owalo and Attorney General Justin Muturi.
The duo argue that the State acted unilaterally and arbitrarily by directing the closure of all government digital payment systems, to allow on-boarding all government services, at the national and county levels, into one digital payment platform eCitizen.go.ke. The directive takes effect on September 30.
The two have challenged the directive, saying there was no public participation before the formulation of the single digital payment platform.
The directive that all national and county governments use the same portal does not promote the distinctiveness of the two levels of government. “I am satisfied that the matter is urgent and I certify it as such,” Justice Ong’udi ruled.
The judge directed the State to respond by the close of business on August 29. The case will be mentioned on September 4 for further directions.
Through lawyer Duncan O’Kubasu, the duo said the State has given the directive contrary to the principles of public finance management, as there is no framework for managing the proposed single digital payment platform.
“Owing to the lack of framework in the implementation of the single digital payment system, there is no mechanism of enforcing accountability and therefore the people of Kenya stand to suffer greatly,” Dr O’Kubasu said in the application.
The government had directed all ministries, counties, departments and agencies to ensure that payments are migrated to the single digital platform Paybill number 222222 and all other payment platforms to be shut down within 30 days of the circular issued by the head of public service on July 10.
The onboarding of all payment services to the platform will ensure that more than 5,000 government services can be accessed through the new platform.
In a gazette notice dated December 20, 2022, Prof Ndung’u said the digital payments platform is integrated with all available electronic payments platforms including mobile telephone payment services.
Prof Ogola says no framework has been established to manage cash transactions through the single digital payment system contrary to section 29 (1) of the Public Finance Management Act, hence risk lack of openness and accountability.
“The inclusion of county services in the single digital payment system by the 1st respondent (CS Treasury) usurps the role of the county treasury as set out under section 104 of the Public Finance Management Act,” he said.
He further said there are several digital payment systems used by different government agencies and there would be no prejudice if the orders sought, suspending the directive are granted.
Mr Okello says the failure to provide alternative means of paying for government services might lead to a complete government shutdown in the event the existing single system fails.
“For instance, in the recent past Kenya has experienced stalled government services on account government portals/websites being hacked hence leaving users of these services at the mercy of the said hackers and unable to acquire the service they crave,” he said.
Mr Okello says there is a need to have in place a formidable framework governing government operations in all digital spaces lest the country plunges into a crisis.
