Kenyans logging into e-Citizen to renew a passport, register a business, or amend a birth certificate may soon pay more than just the service fee.

The National Treasury has tabled draft regulations that scrap the flat Sh50 convenience charge and replace it with a tiered system pegged to the cost of the transaction.

The charges, proposed under the Public Finance Management (E-Citizen System Management) Regulations, 2026, outline a new pricing structure in which users will pay Sh100 for high-value services and lower-tier fees for lower-value transactions across the digital platform.

Under the proposed framework, Kenyans accessing services valued at more than Sh100,000 will be charged a Sh100 convenience fee. Those paying for services priced between Sh10,000 and Sh99,999 will incur a Sh70 charge. Currently, all services on the platform attract a flat convenience fee of Sh50.

For lower transactions, services costing between Sh100 and Sh499 will attract a Sh5 fee, while those valued below Sh99 will not be charged any convenience fee. The State says the structure is intended to align charges with the value of services being accessed across the platform.

Treasury Cabinet Secretary John Mbadi says free government services will stay free, but with over 30,000 services now onboarded — from KRA and NTSA to county licenses — the change will touch nearly every household and business that uses the platform. Services that could be affected include business registrations, passport applications and amendments or registrations of birth and death certificates, many of which already cost more than Sh500 before the additional convenience fee is applied.

Mbadi defended the proposed framework, stating that the charges are necessary under the system’s legal and operational structure.

The proposal comes as the government seeks to formally anchor the controversial fee in law, following court rulings that previously declared the Sh50 charge illegal, discriminatory and introduced without adequate public participation.

The High Court also ruled that the fee amounted to double-charging for public services. The State later appealed the decision but lost the case in November last year, prompting renewed efforts to legalise the charge through regulations now undergoing public participation.

Treasury is now trying to “anchor the convenience charge in law” through formal regulations. Officials argue the new structure streamlines digital payments and sustains growing demand for online services, with President William Ruto noting e-Citizen now processes about Sh2 billion daily. But an Auditor-General report found the platform’s private operators Pesaflow Limited, Webmasters Kenya, and Olivetree Limited raked in Sh1.45 billion in the year to June 2024 from convenience and maintenance fees.

Critics say doubling the cap to Sh100 hands a windfall to the three firms while shifting costs to citizens. The same audit flagged significant threats from lack of government backup and oversight, even though the State took full ownership of e-Citizen in 2023.

The impact will be uneven. A Sh50 fee on a Sh500 driving licence renewal is 10% of the transaction; on a Sh150,000 passport it’s negligible. The new tiers flip that: Sh5 on a Sh499 payment* is just 1%, but Sh100 on a Sh100,001 business permit is still only 0.1%. High-value services like company incorporation, title deed transfers, and work permits will see the biggest jump from Sh50 to Sh100. Treasury says the model is pro-poor because sub-Sh99 payments stay free and low-value fees drop to Sh5.

Treasury is under pressure to grow non-tax revenue as traditional tax heads underperform. Fees from platforms like e-Citizen have become a critical funding source as the government digitizes services and expands its reach.

The platform now hosts KRA, Immigration, Huduma, NTSA, and county payments, and is credited with reducing queues and corruption. But doubling the maximum fee risks pricing out small traders who use e-Citizen for county permits, Sacco registrations, and SHA payments.

Legal experts note the regulations still face public participation and Parliament, and could be challenged again if deemed punitive.

For now, Treasury’s message is clear: digital government isn’t free to run, and users will help foot the bill. Whether Kenyans see convenience or just another cost will depend on how fast, transparent, and glitch-free the Sh100 service turns out to be.