E-Portfolios of on-line scholars are integral to instructional planning and the design of authentic, engaging, and active tutoring for periodic self/peer-and-instructor formative assessments. In addition, the formative assessment in open distance and e-learning (ODeL) is meant to provide and facilitate contact, support, and structure to the learning experiences of students who are often unfamiliar and alienated by the distance learning experience. Previous research has focused on formative assessment strategies, results, and feedback in distance learning, but little has been studied on how to design suitable formative assessment activities in this format. This article, therefore, presents findings of how lecturers can the design a formative assessment for e-portfolio activities for online learning. Ten lecturer participants were purposively sampled from three colleges within the ODeL university. These semi-structured interviews, together with an e-portfolio checklist formed the basis for the interpretative analysis of how formative assessment activities are designed for the e-portfolios. The lecturers are guided by the student’s learning outcomes and use sequential activities for students to do via the e-portfolio. This, therefore, involves the lecturer’s consideration of graded and non-graded formative assessment activities of individual and group work e-portfolios to provide evidence and make judgments about each student’s progress. This study’s findings emphasize the importance of designing formative assessment activities to help students learn the content and develop their understanding which further deepens their knowledge and acquisition of the module outcomes. The research shows that the benefits of optimal student engagement, performance, and learning are the result of the creative design of formative assessment activities.