The adoption and provision of e-services in e-governance systems is on the increase. However, the privacy and security expectations of users (citizens) are not always factored into the design and development of the product or service leading to reduced acceptability, reduced trust and unfavorable attitudes of the users towards the products or services. The objective of the study was to explore this phenomenon in detail and to suggest a Participatory-Based Approach in e-service product development that solicits user experiences into the development of the electronic product or service. A qualitative Research Method was adopted using semi-structured interviews with five (5) departments in Ghana offering e-services to the citizenry. The data gathered was analyzed using grounded theory to ascertain the level of involvement of user expectations in the security and privacy aspect of e-service product development. The results showed that e-product development is a multi-stakeholder project and has an effect on e-product development, user privacy and security expectations is passively considered and with variety of challenges in actively infusing and actively involving users in e-product development. Based on the results, a Participatory-Based Approach was proposed for adoption by the e-government system owners to include users and their expectation in the development of e-service products to ensure improved security and privacy culture among all stakeholders in the E-service value chain in E-governance systems. Key words: usability, E-service, Privacy, Security. DOI: 10.7176/IKM/10-7-09 Publication date: October 31 st 2020