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e-Citizen Revenue Collection

Reconciliation to Settlement Flow

How Government Revenue Flows from Citizen Payment to MCDA Settlement

A complete visualization of the e-Citizen revenue collection process — from the moment a citizen pays for a government service, through PSP collection accounts and KCB Bank settlement, to the final distribution of funds to Ministries, Counties, Departments, and Agencies.

Four-Layer Reference Chain

Stage 2MCDA Invoice Number
Stage 1e-Citizen Portal Reference
Stage 3Pesaflow Payment Reference
Stage 4PSP Reference No. + Transaction ID

Each layer creates a traceable link — from the citizen's payment through PSP collection, into the KCB Settlement Account, and to the MCDA's bank account.

1

Citizen Service Request

Citizens / Businesses

Request Government Service

Citizens and businesses access the e-Citizen portal to request government services.

6 details

e-Citizen Portal

www.ecitizen.go.ke

Kenya's centralized digital gateway for all government services. The unified front-end entry point.

3 details
2

MCDA Internal Systems

MCDA Internal Systems

Ministry / County / Dept / Agency

The service request is routed to the relevant MCDA's internal back-end systems for processing.

3 details

Service Invoice Generated

Original MCDA Invoice Number

The MCDA creates the original service invoice for the first time, carrying a unique MCDA Invoice Number.

4 details
Invoice passed to gateway
3

Payment Gateway (Pesaflow)

Payment Gateway

Pesaflow — Aggregation Engine

The Pesaflow Payment Gateway receives the MCDA invoice and orchestrates the entire payment process.

3 details

Payment Reference Mapping

Gateway Payment Reference No.

Pesaflow creates its own Payment Reference Number and maps it to the MCDA Service Invoice.

4 details

Gateway Invoice Presented

Customer-facing payment request

Pesaflow generates its own invoice to the customer, linked back to the original MCDA invoice. This is what the citizen sees.

3 details

Checkout Page

Multiple payment channels

The customer is presented with a checkout page displaying multiple payment channels to choose from.

4 details
Payment routed to PSPs
4

PSP Aggregation & Collection

Safaricom (M-Pesa)

Paybill 222222

M-Pesa processes the payment and creates its own PSP Reference Number and Transaction ID.

4 details

Banks (EFT/RTGS)

KCB, Equity, Co-op, etc.

Banks process the payment via EFT or RTGS and create their own PSP Reference Number and Transaction ID.

4 details

Card Networks

Visa / Mastercard

Card networks process the payment and create their own PSP Reference Number and Transaction ID.

4 details

Other Mobile Money

Airtel Money, T-Kash

Other mobile money providers process the payment and create their own reference numbers.

4 details
Each PSP settles to KCB
5

PSP Collection Accounts

M-Pesa Collection A/C

Safaricom Trust Account

Safaricom's dedicated collection account where M-Pesa payments are held before settlement.

Bank Collection A/C

Respective Bank Account

Each bank's dedicated collection account for EFT/RTGS payments.

Card Collection A/C

Acquirer Bank Account

The card acquirer bank's collection account for Visa/Mastercard payments.

Mobile Money Collection A/C

Respective Provider Account

Other mobile money providers' collection accounts.

All settle to common account
6

Common Settlement Account — KCB Bank

Common Settlement Account

KCB Bank

All PSPs settle their collected amounts into this single common Settlement Account held at KCB Bank. This is the central convergence point for all e-Citizen revenue.

4 details
Reconciliation begins
7

Periodic Reconciliation

Periodic Reconciliation

National Treasury GDP Team

Based on the information on the Pesaflow system, the National Treasury GDP Team performs reconciliation against the KCB Settlement Account.

Transaction Matching

Four-layer reference chain

PSP Transaction ID is matched to the Gateway Payment Reference, which is matched to the original MCDA Service Invoice.

4 details

Per-MCDA Reports

Amounts due per entity

Per-MCDA settlement reports are generated with the full reference trail, detailing exactly how much is due to each entity.

Discrepancy Identification

Exception handling

Any breaks in the reference chain, mismatches, failed transactions, or exceptions are flagged for investigation.

Reports to GDP Team
8

GDP Team Settlement Instructions

GDP Team — National Treasury

Government Digital Payments Unit

The GDP Team at the National Treasury oversees the settlement process and prepares the formal settlement instructions.

Excel-Based Settlement Reports

Detailed per-MCDA breakdowns

The GDP Team prepares Excel-based settlement reports that detail exactly how much should be settled to each MCDA.

4 details

Settlement Instruction to KCB

Excel reports sent to KCB Bank

The Excel-based settlement reports are transmitted to KCB Bank as the authoritative instruction to execute settlement.

4 details
KCB executes transfers
9

KCB Executes Settlement to MCDAs

KCB Bank Executes Settlement

KCB Settlement A/C → MCDA Bank A/Cs

KCB Bank transfers funds from the common Settlement Account to the external bank accounts of each MCDA.

Funds distributed
10

Fund Distribution to MCDAs

Ministries

External Bank Accounts

Ministry bank accounts at various commercial banks across Kenya.

5 details

Counties

47 County Governments

External bank accounts of all 47 County Governments.

2 details

Departments

External Bank Accounts

Department accounts at various commercial banks.

2 details

Agencies

External Bank Accounts

Agency accounts at various commercial banks.

4 details
MCDAs confirm receipt
11

MDA Confirmation & IFMIS Recording

MDA Confirmation

Internal Reconciliation

Each MCDA verifies amounts received against expected settlements shown on the Pesaflow Dashboard.

MDA Dashboard

Pesaflow Portal

MCDAs access the Pesaflow portal to verify receipts against expected settlements and flag discrepancies.

4 details

IFMIS Recording

Integrated Financial Mgmt System

Confirmed receipts are recorded in IFMIS, the Government of Kenya's official accounting platform.

Settlement Complete

Funds available for operations

The settlement cycle is finalized. Funds are now available for service delivery and operations.