AN
NU
AL REPO
RT20
18 - 2019
Head O
ffice
CA
Centre
P.O B
ox: 144
48, N
airobi 00
800
Mobile: + 254
703 0
42 0
00
, +254 730
172 00
0Em
ail: [email protected]
Western R
egional Offi
ce1st Floor, K
VD
A Plaza, Eldoret
P.O B
ox: 2346, Eldoret 30
100
Mobile: +254
703 0
42 10
5Em
ail: wro@
ca.go.ke
Coast R
egional Offi
ce3rd Floor, N
SSF Building, M
ombasa
P.O B
ox: 8041, M
ombasa 80
100
Mobile: +254
703 0
42 152
Email: cro@
ca.go.ke
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egional Offi
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asin Mall
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ox: 2016, K
isumu 4
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obile: +254 70
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egional Offi
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AN
NU
AL REPO
RT20
18 - 2019
AN
NUA
L REPORT
FOR TH
E FINA
NCIA
L YEAR
END
ED 30TH
JUN
E 2019
AN
NU
AL REPO
RT20
18 - 2019
Table of C
ontents
1
List of of Tables
4
List of Fig
ures
5
A
cronyms and
Ab
breviation
6
Acknow
ledg
ement
12
Executive Sum
mary
13
Board
of Directors
14
Mem
bers of U
niversal Service Ad
visory Council (U
SAC
)
23 M
anagem
ent Team
28 M
essage from
the Chairm
an
31
Messag
e from the D
irector-General
32
Pream
ble
33
Estab
lishment and
Mand
ate of the Authority
33
Corp
orate Governance
33
ICT Sector Statistics at a G
lance
35
The Strategic P
lan 2018-23
36
The Org
anisation Structure
37
1.1 Macroeconom
ic Environm
ent
4
1
1.1.1 Glob
al Econom
y
4
1
1.1.2 Local Econom
y
4
1
1.2 Information and
Com
munication Technolog
y Sector
41
1.2.1 Glob
al ICTs
41
1.2.1.1 Mob
ile Cellular Services
42
1.2.1.2 Internet Services
4
3
1.2.1.3 Broad
band
Services
4
3
Table of Contents1.2.2 Local IC
Ts
44
1.2.2.1 C
ontribution of the IC
T Sector to GD
P
4
4
1.2.2.2 Grow
th of the ICT Sector
4
4
1.3 Future O
utlook
45
1.3.1 Econom
ic Outlook
4
5 1.3.2 O
utlook in the ICT Sector
4
5
2.1 Rad
io Freq
uency Spectrum
Manag
ement
4
9
2.1.1 Mob
ile Cellular Services
4
9
2.1.2 Fixed
Wireless A
ccess Systems
50
2.1.3 Fixed
Terrestrial Links
50 2.1.4
Satellite Systems
51
2.1.5 Private R
adio N
etworks
51
2.1.6 Aeronautical R
adio
52
2.1.7 Am
ateur Rad
io
52
2.1.8 Rad
io Alarm
Netw
ork
52
2.1.9 Dig
ital Terrestrial Television (DTT) B
roadcasting
F
requencies
52
2.1.10 F
requency M
odulation (F
M) B
roadcasting
Freq
uencies 53
2.1.11 Maritim
e Mob
ile Service Identity
53
2.2 Manag
ement of N
umb
ering R
esources
54
2.2.1 Telecom N
umb
ering R
esources
54
2.2.1.1 Assig
nment of Telecom
Num
bering
Resources
54
2.2.1.2 National N
umb
ering P
lan Utilisation
54
2.2.1.3 Mob
ile Num
ber P
ortability
55
2.2.2 Manag
ement of D
ot KE
Dom
ains
55
CHA
PTER I: MA
CROECO
NO
MIC EN
VIRO
NM
ENT
A
ND
ICT SECTOR
40
CHA
PTER II: MA
NA
GEM
ENT O
F ICT RESOU
RCES 48
1 PA
GE
3.1 Licensing
59
3.1.1 Telecoms Licensing
59
3.1.2 Type A
pp
roval
59
3.1.3 Postal Licensing
60
3.1.4 B
roadcasting
Licensing
60
3.2 Trends in the P
rovision of ICT Services
61
3.2.1 Mob
ile Telephony Services
61 3.2.2 M
obile F
inancial Services
63
3.2.3 Internet Services
64
3.2.4 B
roadb
and Services
65 3.2.5 F
ixed N
etwork V
oice Services
65
3.2.6 Postal and
Courier Services
66 3.2.7 B
roadcasting
Services
67
3.2.7.1 Free-to-A
ir Broad
casting Services
67 3.2.7.2 Sub
scription B
roadcasting
Services
68
3.2.7.3 B
roadcasting
Signal D
istribution Services
68
3.3 Tariffs and
Com
petition
69
3.3.1 Fixed
and M
obile N
etwork Services
69 3.3.2 B
roadcasting
Services
71
4.1 Insp
ections
75
4.1.1 Telecom
munications Insp
ections and C
ertification of Installations
75
4.1.2 R
adio C
omm
unications Inspections
75
4.1.2.1 Land
Mob
ile Rad
io Stations
76
4
.1.2.2 FM
Rad
io and D
igital TV
Broad
cast Stations
76
4.1.2.3 F
ixed R
adio C
omm
unication Installations
76
4.1.3 P
ostal and C
ourier Licensees Inspections
76
4.2 M
onitoring
76 4
.2.1 Rad
io Monitoring
and F
requency Interference R
esolution
76 4
.2.1.1 Freq
uency Monitoring
76
4.2.1.2 R
adio F
requency Interference R
esolution
77
4.2.2 B
roadcast C
ontent Monitoring
77
4.2.2.1 C
omp
liance with Local C
ontent Quota
77
4.2.2.2 P
erformance of the V
arious Genres
78
4.2.2.3 C
hildren’s P
rogram
ming
78
4.3 E
nforcement
79
4.4
Evaluation of E
nvironmental Im
pact A
ssessment R
eports
79
5.1 National C
yber Security M
anagem
ent
83
5.2 Cyb
er Threats Detected
84
5.3 Cyb
er Threats Ad
visories
84
5.4 C
yber Security C
ollaborations
85
6.1 Consum
er Ed
ucation and Inform
ation
89
6.1.1 Child
Online P
rotection
89
6.1.2 Consum
er Ed
ucation Initiatives
89
6.2 Und
erstanding
the Consum
er
89
6.2.1 Custom
er Satisfaction
90
6.2.2 Consum
er Protection
90
CHA
PTER IV: EN
SURIN
G CO
MPLIA
NCE
74
CHA
PTER V: M
AN
AG
EMEN
T OF CYBER SECU
RITY
82
CHA
PTER VI: EM
POW
ERING
AN
D PRO
TECTING
THE
CO
NSU
MER
88
CHA
PTER III: PROM
OTIN
G CO
MPETITIO
N
58
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RT20
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6.2.3 Consum
er Com
plaints and
Enq
uiries
90
6.2.3.1 Com
plaints
90
6.2.3.2 Enq
uiries
90
7.1 Projects Sup
ported
by Universal Service F
und
97
7.1.1 Ed
ucation Broad
band
Project
97
7.1.2 The Voice Infrastructure P
roject
97
7.2 Universal Service O
blig
ations
97
8.1 Cap
acity Build
ing
101
8.1.1 Org
anizational Learning
101
8.1.2 Build
ing C
apacity in the Ind
ustry
10
1
8.1.3 Know
ledg
e Transfer betw
een Industry and
Acad
emia
10
1 8.1.4
Research, Innovation and
Know
ledg
e Manag
ement
10
2
8.2 Working
Environm
ent
10
2
8.2.1 Occup
ational Health and
Safety
10
2
8.2.2 Em
ployee W
ellness
10
2
8.2.3 Environm
ental Sustainability
102
8.2.4 G
ender and
Disab
ility Mainstream
ing
102
8.2.5 Cam
paig
n Ag
ainst HIV/A
IDS
102
8.2.6 Prevention of A
lcohol and D
rug and
Substance A
buse
10
3
8.3 National C
ohesion and V
alues
10
3
8.4 A
utomation of the Internal P
rocess
10
3
9.1 Corp
orate Com
munication
107
9.1.1 Pub
lic Activities
107
9.1.2 Stakeholder E
ngag
ement
107
9.1.3 Pub
lic Consultations
107
9.1.4 P
ublic E
ngag
ement A
ctivities
10
7
9.1.5 Corp
orate Social Resp
onsibility
107
9.1.6 Exhib
itions and P
romotional A
ctivities
10
7 9.1.7 P
erception Survey
107
9.2 International Liaison
10
9
9.2.1 Mem
bership
to Reg
ional and International O
rganizations
10
9
9.2.2 Reg
ional and International E
ngag
ements
109
9.2.3 Benchm
arking
109
10.1 P
rocurement and
Disp
osal
115
10.2 F
inancial Statements
116
10.2.1 Statem
ent of the Directors’ R
esponsib
ilities
116
10.2.2 R
evenue
118
10.2.2.1 Sources of R
evenue
119
10.2.3 E
xpend
iture
119
10.2.4
Surplus
119
10.2.5 Statem
ent of Financial P
osition as at 30th June 20
18
120
10.2.6 A
udited
Financial Statem
ents
121
10.2.6.1 A
ssets
121
10.2.6.2 Liab
ilities
121
CHA
PTER X: PROCU
REMEN
T AN
D FIN
AN
CIAL STATEM
ENTS
114
CHA
PTER VII: U
NIV
ERSAL SERV
ICE INITIATIV
ES
96
CHA
PTER VIII: CA
PACITY BU
ILDIN
G, IM
PROV
EMEN
T OF
SYSTEM
S AN
D W
ORKIN
G EN
VIRO
NM
ENT
100
CHA
PTER IX: CORPO
RATE COM
MU
NICATIO
N
A
ND
INTERN
ATION
AL LIA
ISON
106
PA
GE
4
AN
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AL REPO
RT20
18 - 2019
Table 1.1: Sum
mary of E
conomic Ind
icators
4
4
Table 2.1: M
obile C
ellular Systems
49
Table 2.2: F
ixed W
ireless Access System
s
50
Table 2.3: F
ixed Terrestrial Links
50
Table 2.4
: Ad
ditional P
rivate Land M
obile Station
51
Table 2.5: C
umulative D
igital TV
Freq
uency Assig
nments
52
Table 2.6: F
M B
roadcasting
Freq
uencies
53
Table 2.7: M
aritime M
obile Service Id
entity Assig
ned
53
Table 2.8: N
umb
ering R
esources Assig
ned
54
Table 2.9: Status on A
ssignm
ent of Telecoms N
umb
ering
R
esource as at 30th June 20
19
54
Table 2.10
: Monthly P
orting Statistics
55
Table 2.11: R
egistered
Dot K
E D
omains
55
Table 3.1: Telecom
munications Licensees
59
Table 3.2: Typ
e Ap
proval/A
cceptance A
pp
lications Hand
led
60
Table 3.3: Licensed
Postal and
Courier O
perators
60
Table 3.4
: Num
ber of B
roadcasting
Licenses by Categ
ory
61
Table 3.5: M
obile Telep
hony Services as at the E
nd of the F
inancial Year
61
Table 3.6: M
obile Traffi
c Indicators as at the
End
of the Financial Year
62
Table 3.7: M
obile Traffi
c Indicators as at the
End
of the Financial Year
63
Table 3.8: M
obile F
inancial Services as at the E
nd of the F
inancial Year
64
Table 3.9 Internet Sub
scriptions as at the
End
of the Financial Year
64
List of TablesTab
le 3.10: N
umb
er of Broad
band
Subscrip
tions as at the
End
of Financial Year
65
Table 3.11: A
vailable International B
andw
idth as at the
E
nd of F
inancial Year
65
Table 3.12: International U
sed B
andw
idth as at the
E
nd of F
inancial Year
65
Table 3.13: F
ixed N
etwork Sub
scriptions
65
Table 3.14
: Postal and
Courier N
etwork Ind
icators as at the E
nd of F
inancial Year
67
Table 3.15: A
verage Tariff
s as at the
End
of Financial Year in K
ES
69
Table 3.16: B
roadcast Sig
nal Distrib
ution Charg
es in K
ES p
er Site per M
bit/s
71
Table 4
.1: Summ
ary of Telecomm
unication
Licensee Inspections and
Certification
75
Table 4
.2: Num
ber of O
n-site Inspections
Cond
ucted for the Last F
ive Years
75
Table 4
.3: Com
pliance Levels
76
Table 4
.4: N
umb
er of Freq
uency Monitoring
Activities
77
Table 4
.5: Num
ber of F
requency Interference C
ases
77
Table 4
.6: Summ
ary of Broad
cast Content M
onitoring
77
Table 4
.7: Broad
cast Local Content by G
enre in Minutes
78
Table 4
.8 Child
ren’s Prog
ramm
es Req
uirement of at Least
5 hours per W
eek (300
Minutes)
78
Table 5.1: C
yber Threats D
etected
84
Table 5.2: C
yber Threats V
alidated
and E
scalated
84
Table 6.1: N
umb
er of Enq
uiries Processed
in the FY
2018/19
92
Table 8.1: O
rganizational Learning
in Various A
reas
101
5 PA
GE
AN
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AL REPO
RT20
18 - 2019
List of Figures
Table 10
.1: Top – Ten Tend
ers Aw
arded
in FY
2018/19 by V
alue
115F
igure 1.1: G
lobal IC
T Indicators
42
Fig
ure 1.2: Reg
ional Mob
ile Cellular P
enetration
4
2
Fig
ure 1.3: Mob
ile Cellular Sub
scriptions by Level of D
evelopm
ent
42
Fig
ure 1.4: G
lobal Internet U
sage
43
Fig
ure 1.5: Reg
ional Mob
ile Broad
band
Penetration in 20
18*
43
Fig
ure 1.6: Information and
Com
munication G
DP
and G
rowth
4
4
Fig
ure 2.1: Mob
ile Cellular System
s Transceivers
4
9
Fig
ure 2.2: Fixed
Wireless A
ccess Systems
50
Fig
ure 2.3: Fixed
Terrestrial Links
51
Fig
ure 2.4: V
HF
Alarm
Units
52
Fig
ure 2.5: Dig
ital TV F
requencies
52
Fig
ure 2.6: Distrib
ution FM
Sound B
roadcasting
by Type
53
Fig
ure 3.1: Mob
ile Netw
ork Services Market Share p
er
Service Provid
er
62
Fig
ure 3.2: Share of On-N
et vs Off
-Net M
inutes of Local Calls
62
Fig
ure 3.3: Mob
ile Financial Services M
arket Share Per O
perator
63
Fig
ure 3.4: P
roportion of M
obile to F
ixed Internet Sub
scriptions
64
Fig
ure 3.5: Voice Traffi
c Pattern for F
ixed N
etworks
66
Fig
ure 3.6: International Incoming
and O
utgoing
Calls
66
Fig
ure 3.7: Free-to-A
ir Broad
casting
67
Fig
ure 3.8: Num
ber of Sub
scriptions to B
roadcasting
Services
68
Fig
ure 3.9: Dig
ital Terrestrial Pop
ulation Coverag
e in Percentag
e
68
Fig
ure 3.10: E
volution of PAY
G V
oice Tariffs
69
Fig
ure 3.11: Prom
otions and Sp
ecial Off
ers
70
Fig
ure 3.12: MN
Os P
roducts P
romotions and
Special O
ffers
70
Fig
ure 4.1: B
roadcast C
ontent by Genre
78
Fig
ure 4.2: C
hildren’s P
rogram
s Req
uirement
of at Least 5 Hours p
er Week
79
Fig
ure 4.3: E
nforcement A
ctivities FY
2018/19
79
Fig
ure 5.1: Functions of the N
ational KE
-CIR
T/CC
83
Fig
ure 6.1: Num
ber of C
onsumer C
omp
laints
90
Fig
ure 6.2: Prop
ortionate Rep
resentation of Enq
uiries Received
92
Fig
ure 7.1: USF
Connected
Sites
97
Fig
ure 10.1: Sources of R
evenue
119
PA
GE
6
AN
NU
AL REPO
RT20
18 - 2019
Ab
breviation
M
eaning
2G
Second
Generation
3G
Third
Generation
4G
Fourth Generation
5G
F
ifth Generation
AC
CA
Association of C
hartered C
ertified A
ccountants
AC
M
A
ssociation of Com
puting
Machinery
AD
N
A
frica Dig
ital Netw
ork
AD
NL
A
frica Dig
ital Netw
ork Limited
AE
O
A
frica Econom
ic Outlook
AFC
ON
African C
up of N
ations
AF
RA
LTI
African A
dvanced
Level Telecomm
unications Institute
AI
Artificial Intellig
ence
AP
T
Ad
vanced P
ersistent Threat
AR
ICE
A
A
ssociation of Reg
ulators of Information and
Com
munication of E
astern and Southern A
frica
AR
SK
A
mateur R
adio Society of K
enya
ATU
African Telecom
munications U
nion
BD
T
Telecomm
unications Develop
ment B
ureau
BM
A
B
ody M
ass Index
Brexit
B
ritish Exit
BSc.
B
achelor of Science
BSD
Broad
cast Signal D
istributor
BTS
B
ase Transmitter Stations
BU
C
B
lock Up
converter
CA
Com
munications A
uthority of Kenya
CB
Citizen B
and
CB
A
C
omm
ercial Bank of A
frica
CB
K
C
entral Bank of K
enya
ccTLD
C
ountry Cod
e Top Level D
omain
CE
RT
C
omp
uter Em
ergency R
esponse Team
CE
RT.P
T
Portug
uese National C
ER
T
CIR
T
Com
puter Incid
ent Resp
onse Team
Acronym
s and Abbreviations
7PAGE
ANNUAL REPORT2018 - 2019
CIS Commonwealth of Independent States
CoC Central Office Code
COP Child Online Protection
CPA Certified Public Accountant
CPI Consumer Price Index
CPS Certified Public Secretary
CS Cabinet Secretary
CSK Computer Society of Kenya
CSR Corporate Social Responsibility
CTO Commonwealth Telecommunications Organization
DDOS Distributed Denial of Service
DNIC Data Network Identification Code
DSL Digital Subscriber Line
DTT Digital Terrestrial Television
DVB Digital Video Broadcasting
EAC East African Community
EACO East African Communications Organization
EAP Employee Assistance Programme
EASSy East African Sub-marine Cable System
EBK Engineers Registration Board
EBS the Elder of the Order of the Burning Spear
EIA Environmental Impact Assessment
EMCA Environmental Management and Coordination Act
ERP Enterprise Resource Planning
EU European Union
FCPA Fellow of the Institute of Certified Public Accountant
FIRST Forum for Incident Response and Security Teams
FM Frequency Modulation
FN Fixed Number
FTA Free-To-Air
FY Financial Year
Gbps Giga Bits Per Second
GDP Gross Domestic Product
PA
GE
8
AN
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AL REPO
RT20
18 - 2019
GE
MB
A
G
lobal E
xecutive Master’s D
egree in B
usiness Ad
ministration
GH
z
Gig
a Hertz
GSM
Glob
al System For M
obile C
omm
unication
GSM
A
G
lobal System
Mob
ile Association
HF
Hig
h Freq
uency
HPA
Hig
h Pow
er Am
plifier
HR
Hum
an Resource
HR
M
H
uman R
esource Manag
ement
ICA
NN
Internet Corp
oration for Assig
ned N
ames and
Num
bers
ICT
Inform
ation and C
omm
unications Technology
ICT4
D
IC
T for Develop
ment
ICTA
K
Inform
ation Com
munication Technolog
y Association of K
enya
IDTV
Integrated
Dig
ital Television
IEE
E
Institution of E
lectrical and E
lectronics Eng
ineers
IGF
Internet Governance Forum
IIA
Institute of Internal A
uditors
IIN
Issuer Identification N
umb
er
IMF
International Monetary F
und
IMSI
International M
obile Station Id
entification Cod
e
IoTs
Internet of Things
IPS
Ind
ustrial Prom
otion Services
IPSA
S
International Pub
lic Sector Accounting
Standard
s
IR&
D
Innovation, R
esearch and D
evelopm
ent
ISAC
A
Inform
ation Systems A
udit and
Control A
ssociation
ISM
Ind
ustrial, Scientific and M
edical
ISPC
International Signaling
Point C
ode
IT
Inform
ation Technology
ITU
International Telecom
munication U
nion
ITU-D
International Telecomm
unications - Develop
ment
JKU
AT
Jom
o Kenyatta university of A
griculture and
Technology
KB
C
K
enya Broad
casting C
orporation
KE
Kenya
KE
-CIR
T/CC
Kenya N
ational Com
puter Incid
ent Resp
onse Team/C
oordination C
entre
9 PA
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AL REPO
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18 - 2019
KE
CO
SO
K
enya Com
munications Sp
orts Org
anizations
KE
NIC
Kenya N
etwork Inform
ation Centre
KE
S
Kenya Shilling
KIC
A
K
enya Information and
Com
munications A
ct
KIP
Kenya Integ
rity Plan
KLIF
Kenya Lead
ership and
Integrity Forum
KN
ATC
OM
Kenya N
ational Com
mission
KN
BS
K
enya National B
ureau of Statistics
KPA
Kenya P
orts Authority
KP
C
K
enya Pip
eline Com
pany
KP
I
Key P
erformance Ind
icator
KP
TC
K
enya Posts and
Telecomm
unications Corp
oration
KR
As
K
ey Result A
reas
KW
S
Kenya W
ildlife Service
LDB
Lancia Dig
ital Broad
casting
LLP
Lim
ited Liab
ility Partnership
LSK
Law
Society of Kenya
LTE
Long
Term E
volution
MA
CR
A
M
alawi C
omm
unications Reg
ulatory Authority
MB
Meg
abyte
Mb
ps
M
ega B
its Per Second
MB
S.
Master of B
usiness Studies
MC
K
M
edia C
ouncil of Kenya
MD
As
M
inistries, Dep
artments and
Ag
encies
MH
z
Meg
a Hertz
MM
SI
Maritim
e Mob
ile Service Identity
MM
UST
M
asinde M
uliro University of Science and
Technology
MN
DC
Mob
ile National D
estination Cod
e
MN
O
M
obile N
etwork O
perator
MoIC
T
Ministry of Inform
ation, Com
munication and
Technology
MSK
Marketing
Society of Kenya
Mt.
M
ountain
MTN
Mob
ile Telecomm
unications Netw
ork
MTP
III
Third M
edium
Term P
lan
PA
GE
10
AN
NU
AL REPO
RT20
18 - 2019
NA
S
National A
dd
ressing System
NB
S
National B
roadb
and Strateg
y
NC
C
N
etwork C
olour Cod
e
ND
C
N
ational Destination C
ode
ND
Cs
N
ational Destination C
odes
NE
MA
National E
nvironmental M
anagem
ent Authority
NK
CC
National K
E-C
IRT/C
C C
yber Security C
omm
ittee
NP
RC
Num
ber P
ortability R
outing C
ode
NSP
C
N
ational Signalling
Point C
ode
OG
W
O
rder of G
rand W
arrior
OTT
O
ver the Top
P2P
Person to P
erson
PAB
X
P
rivate Autom
atic Branch E
xchange
PAN
G
P
an Africa N
etwork G
roup
PAN
G
P
an-Africa N
etwork G
roup
PAP
U
P
an African P
ostal Union
PAY
G
P
ay-As-You-G
o
PC
K
P
ostal Corp
oration of Kenya
PD
TP
P
residential D
igital Talent P
rogram
me
PE
P
P
ost Exp
osure Prop
hylaxis
PF
M
P
ublic F
inance Manag
ement
PhD
Doctor of P
hilosophy
PLC
Pub
lic Limited
Com
pany
PR
N
P
remium
Rate N
umb
er
PSC
U
P
residential Strateg
ic Com
munications U
nit
PSTN
/IP
P
ublic Sw
itched Telep
hone Netw
ork/Internet Protocal
PW
Ds
P
ersons with D
isabilities
QO
SMS
Q
uality of Service Monitoring
System
R&
D
R
esearch and D
evelopm
ent
RR
NL
R
estricted and
Reserved
Nam
e List
SC
Short C
ode
SDG
s
Sustainable D
evelopm
ent Goals
SHF
Hig
h Freq
uency
11P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
SHF
Super H
igh F
requency
SIEM
Security information and
event manag
ement
SIM
Sub
scriber Id
entity Mod
ule
SMS
Short M
essage Service
SOYA
Sports P
ersonality of the Year Aw
ards
SSA
Sub
-Saharan Africa
SSD
Sig
net Signal D
istributors
TEA
MS
The E
ast African M
arine System
TEM
s
Telecoms, E
lectronics and M
obiles
TFN
Toll Free N
umb
er
TV
Television
UC
C
U
gand
a Com
munications C
omm
ission
UH
F
U
ltra-Hig
h Freq
uency
UK
United
King
dom
UN
United
Nations
UH
C
U
niversal Health C
overage
UN
EP
United
Nations E
nvironmental P
rogram
me
UN
ESC
O
U
nited N
ations Ed
ucational, Scientific and C
ultural Org
anization
UN
ISA
U
niversity of South Africa
UP
U
U
niversal Postal U
nion
USA
United
States of Am
erica
USA
C
U
niversal Service Ad
visory Council
USD
United
States Dollar
USF
Universal Service F
und
USIU
United
States International University
USTTI
U
nited States Telecom
munications Training
Institute
VC
T
Voluntary C
ounselling and
HIV
Testing
VH
F
V
ery Hig
h Freq
uency
VSA
T
Very Sm
all Ap
erture Terminal
WE
O
W
orld E
conomic O
utlook
WIM
AX
World
wid
e Interoperab
ility for Microw
ave Access
ZIC
TA
Z
amb
ia Information C
omm
unications Technology A
uthority
PA
GE
12
AN
NU
AL REPO
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18 - 2019
The Authority acknow
ledg
es and ap
preciates the hard
work that w
ent into d
eveloping
this Annual R
eport and
wishes to thank the follow
ing
individ
uals for their ded
ication, comm
itment and
professionalism
:
• M
r. Matano N
daro
• D
r. James N
jeru
• Mrs. P
atricia Kerretts-K
emei
• M
r. Lewis M
uriithi
• Mr. G
odfrey M
uhatia
• Mr. Sam
uel And
ati
• Mr. Jum
a Ooro
• M
s Linda K
inyanjui
• Mr. Lukas M
usemb
i
• Mr. N
elson Wasilw
a
• Ms. Jane K
inyanjui
• Ms. W
innie Ow
iti
• Ms B
etty Kirim
i
• Mr. B
rian Mukhong
o
• Mr. Josep
h Kam
unge
• M
r. Samm
y Mw
ichuri
• Ms Sally G
itonga
• M
r. Fred
Ong
’aro
• Mr. B
ernard N
deritu
Acknow
ledgement
13P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
Executive Summ
arySection 22(1) of the K
enya Information and
Com
munications A
ct, 1998 (KIC
A), req
uires the Authority’s B
oard to p
repare a rep
ort of its operations w
ithin three (3) m
onths of the end of each financial year (F
Y). In com
pliance w
ith this statutory oblig
ation, the Authority p
repared
this report b
ased on initiatives and
activities for im
plem
entation under year one (1) of its 4
th Strategic P
lan 2018-23.
During
the FY
2018/20
19 significant g
rowth w
as registered
in the ICT sector as a result of the A
uthority’s continued p
rovision of an enabling
environment for
service provid
ers, which saw
the sector grow
from 11.0
per cent in 20
17 to 11.4 p
ercent in 2018. This g
rowth w
as catapulted
by the continued up
take of mob
ile com
munication services w
hose subscrip
tions increased from
45.6 m
illion to 52.2 million w
hile those of broad
band
services increased from
20.4
million to 22.2
million in com
parison to the p
receding
reporting
period
. Ad
ditionally, the num
ber of m
obile m
oney subscrip
tions rose from 29.7 m
illion the previous year to 32.6
million d
uring the year in review
.
This increase was sup
ported
by the increase in the numb
er of active mob
ile money transfer ag
ents from 290
,432 com
pared
to 266,022 record
ed the p
revious year. C
onsequently, the num
ber of K
enyans accessing m
obile inform
ation and com
munication services, m
obile m
oney services, e-comm
erce, high-sp
eed Internet/
broad
band
services, and other IC
T services have continued to g
row.
During
the year, the Authority im
plem
ented several activities that focused
on fostering d
evelopm
ent in the ICT sector; em
pow
erment and
protection of consum
ers of IC
T services with resp
ect to prices charg
ed, q
uality and d
iversity of those services as well as roll out of IC
T services in un-served and
under-served
areas.
These activities included
:
• Assig
nment of ad
ditional freq
uencies in the 800
MH
z band
and 70
0 M
Hz to tw
o licensees, which led
to a more than tw
o-fold d
eploym
ent of 4G
base
stations.
• Issuance of 329 telecom
munication licensees und
er the ULF, 229 licensees for p
ostal and courier op
erators as well as 71 b
roadcasting
licenses.
• Insp
ection of 752 telecomm
unication licensees across the country focussing on licensees off
ering end
user services as well as infrastructure netw
orks off
ering w
holesale services. The comp
liance level of the inspected
licensees stood at 4
4.7 p
er cent comp
ared to 29.2 p
er cent recorded
the previous year.
• D
etection of over 51.9 million cyb
er threat events comp
ared to 23.8 m
illion in the previous year throug
h the National K
E-C
IRT/C
C. This increase is attrib
uted
to the enhancement of the K
E-C
IRT/C
C d
etection capab
ilities, enhanced collab
oration with external p
artners as well as increased
glob
al cyber-attacks.
• E
mp
owerm
ent and p
rotection of consumers of IC
T services, with resp
ect to prices charg
ed, q
uality and d
iversity of those services in the ICT sector
through p
ublic eng
agem
ent and p
ublicity activities such as K
ikao Kikuu.
• P
rovision of ICT services to the un-served
and und
er-served p
opulation throug
h roll out of USF
funded
voice infrastructure projects in ad
ditional 36 sub
- locations and
schools broad
band
connectivity to add
itional 253 pub
lic secondary schools as w
ell as imp
lementation of the U
SO ob
ligations.
• G
auging
pub
lic awareness, attitud
es and op
inion on the CA
brand
and custom
er satisfaction through p
erception surveys.
• P
romoting
gend
er equality and
equity by ensuring
that staff fem
ale to male ratio is 4
4:56, w
hich is above the constitutional threshold
for one-third g
ender
rule.
• R
epresenting
the Authority as w
ell as consolidating
positions in reg
ional and international fora. These initiatives led
to election of a Kenyan, M
r. John Om
o as the Secretary G
eneral of the ATU
for a 4-year tenure and
re-election of Kenya to the International Telecom
munication U
nion (ITU) C
ouncil for the period
20
19-23.
In an effort to enhance effi
ciency and eff
ective service delivery, the A
uthority continued w
ith the imp
lementation of an E
nterprise R
esource Planning
(ER
P) system
to autom
ate some of its p
rocesses.
A d
etailed p
resentation of all the milestones and
achievements m
ade by the A
uthority during
the FY
2018/19 are hig
hlighted
in this Annual R
eport.
PA
GE
14
AN
NU
AL REPO
RT20
18 - 2019
Board of Directors
Accord
ing to Section 6 (1) of the K
enya Information and
Com
munications A
ct, 1998 (KIC
A) the m
anagem
ent of the Authority vests on the B
oard of D
irectors, w
hich consists of the Chairm
an and 10
mem
bers.
The term of the seven (7) m
emb
ers of the Board
who w
ere app
ointed by the C
abinet Secretary in accord
ance with Section 6B
of the KIC
A cam
e to an end on 28th
Ap
ril 2019 after serving
for three (3) years
Mr
Ng
ene B
. G
ituku, E
BS;
(Born
in 1955)
is the
Chairm
an of
the
Com
munications A
uthority of Kenya (C
A) B
oard of D
irectors.
He served
as CA
chairman from
2014
to 2017, p
rior to which he w
as the
Chairm
an of the defunct C
omm
unications Com
mission of K
enya (now
CA
) for a period
of one and a half years.
He hold
s a BSc. D
egree in M
athematics and
Meteorolog
y from the
University of N
airobi and
Dip
loma in M
arketing. H
e has served as B
oard
mem
ber at K
enya Broad
casting C
orporation (K
BC
) and K
enya Pip
eline
Com
pany (K
PC
).
Mr. G
ituku was re-ap
pointed
to the position on 18th A
pril 20
18 for a three
year term.
Mr. F
rancis Wang
usi, MB
S; (Born in 1958) w
as the Director G
eneral of the
Com
munications A
uthority of Kenya (C
A) up
to 21st Aug
ust 2019 w
hen
his second term
in office end
ed.
Mr. W
angusi is currently p
ursuing a P
hD in M
anagem
ent. He hold
s
a M
aster’s D
egree
in Sp
ace Sciences
(Satellite C
omm
unications);
BSc
deg
ree (Telecom
munications
Eng
ineering);
Charted
E
ngineer-
UK
C
ertificate and
G
lobal
Executive
Masters
Deg
ree in
Business
Ad
ministration (G
EM
BA
).
Mr. W
angusi has over 34
years’ experience in the IC
T sector. He has
presid
ed over land
mark p
rojects that have revolutionized the sector, the
most recent b
eing the successful transition to d
igital b
roadcasting
in
Kenya. H
e has previously served
as Director in the d
epartm
ents of MM
S
and LC
S.
MR. N
GEN
E GITU
KU, EBS
MR. FRA
NCIS W
. WA
NG
USI, M
BS
15P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
Ms. Fatum
a Hirsi M
ohamm
ed, C
BS, w
as the Princip
al Secretary for the
State Dep
artment of B
roadcasting
and Telecom
munications, M
inistry of
Information, C
omm
unications and Technolog
y (ICT).
She served in the C
omm
unications Authority of K
enya Board
from 13th
July 2018 to 1st M
arch 2019 in her cap
acity as Princip
al Secretary at the
MoIC
T. Ms Fatum
a Hirsi hold
s a PhD
in comm
unication studies, an M
BA
instrategy and
marketing
, a BA
(Hons) in lang
uages and
a postg
raduate
dip
loma in P
ublic R
elations, and a B
achelors deg
ree in Islamic Stud
ies.
Ms. Fatum
a Hirsi had
previously served
as the Princip
al Secretary for the
State Dep
artment of Tourism
.
She also worked
at the Universal P
ostal Union, form
er Kenya P
osts
and
Telecomm
unication C
orporation,
the form
er C
omm
unications
Com
mission
of K
enya; form
er K
encell C
omm
unications Ltd
, N
ation
Med
ia Group
and the G
ulf African B
ank in various capacities.
Mr. Jerom
e Ochieng
’ (Born in 1970
) is the Princip
al Secretary for ICT
and Innovation. H
e serves in the CA
Board
in his capacity as P
rincipal
Secretary.
He
holds
a M
asters’ D
egree
in Inform
ation E
ngineering
from
the
University of the R
yukyus, Okinaw
a, Japan. H
e is a registered
fellow of
the Com
puter Society of K
enya and a Licentiate M
emb
er of the Institute
of Manag
ement Inform
ation Systems (IM
IS), UK
.
Mr. O
chieng has 17 years’ w
ork experience in the field
of information and
comm
unication technology in the P
ublic Service. H
e was the D
irector
of the Integrated
Financial M
anagem
ent Information System
(IFM
IS)
at the National Treasury and
also served as IC
T Manag
er with P
ublic
Procurem
ent Oversig
ht Authority for 6 years.
MS. FATU
MA
HIRSI M
OH
AM
MED, CBS
MR. JERO
ME O
CHIEN
G’
PA
GE
16
AN
NU
AL REPO
RT20
18 - 2019
Dr. K
aranja Kib
icho (Born in 1967) is the P
rincipal Secretary State
Dep
artment of Interior. H
e serves in the CA
Board
in his capacity as
Princip
al Secretary.
He hold
s a Doctorate of P
hilosopy (PhD
) in Mechanical E
ngineering
from
the University of C
ape Tow
n, South Africa, a M
aster’s of Science (MSc)
deg
ree in Mechanical E
ngineering
and a B
achelor of Science (BSc) in
Mechanical E
ngineering
.
Dr. K
ibicho has taug
ht in various institutions of higher learning
, including
Jomo
Kenyatta
University
of A
griculture
and
Technology
(JKU
AT),
where he served
as the Chairm
an and Senior Lecturer in the D
epartm
ent
of Mechanical E
ngineering
.
He has served
as an external examiner at the U
niversity of Dar es Salaam
,
visiting lecturer at the C
entral University of Technolog
y, Free State,
South Africa and
a part-tim
e Lecturer at the University of C
ape Tow
n.
Dr. K
amau Thug
ge is the P
rincipal Secretary at the N
ational Treasury. He
was ap
pointed
to this position on 7th June 20
13.
He serves in the C
A B
oard in his cap
acity as Princip
al Secretary at the
National Treasury.
Dr. Thug
ge hold
s a Doctorate of P
hilosophy (P
hD) in E
conomics and
a Master’s in E
conomics, b
oth from Johns H
opkins U
niversity, United
States of Am
erica (USA
) and a B
achelors of Arts (E
conomics) D
egree
from C
olorado C
ollege, U
SA.
DR. KA
RAN
JA KIBICH
OD
R. KAM
AU
THU
GG
E
17P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
Prof.
Levi O
bonyo
(Born
in 1966)
is an
Associate
Professor
of
Com
munication and
Med
ia Studies, and
also the Dean of the School of
Com
munication, Lang
uage and
Perform
ing A
rts at Daystar U
niversity.
Prof. O
bonyo hold
s a PhD
in Mass M
edia and
Com
munications from
Temp
le University P
hiladelp
hia, USA
. He also hold
s a Postg
raduate
Dip
loma
in Tertiary
Ed
ucation from
P
otchefstroom
University
for
Christian H
igher E
ducation, South A
frica.
He is a form
er Chairm
an of the Med
ia Council of K
enya. He currently
serves as
a m
emb
er of
the A
dvisory
Council
to K
enya N
ational
Com
mission to U
NE
SCO
(KN
ATC
OM
) specializing
on comm
unications.
He joined
the CA
Board
on 20th M
ay 2014
and reap
pointed
on 29th Ap
ril
2016 for a further term
of three years. He exited
the CA
board
on 28th
Ap
ril 2019.
Mr. D
avid K
itur (Born in 1963) is a b
usinessman and
an engineer w
ith
interests in the technology ind
ustry. He is the E
xecutive Director of
Microlan A
frica.
Mr. K
itur holds a M
aster’s of Science (MSc.) d
egree in Softw
are Systems
Technology from
Sheffield
University, U
K and
a BSc. in E
lectrical and
Electronics E
ngineering
from the U
niversity of Nairob
i. He has attend
ed
short courses in Pub
lic Procurem
ent and C
orporate G
overnance, among
others.
He has vast exp
erience in the ICT ind
ustry having w
orked as an eng
ineer
at the then Voice of K
enya (now K
BC
), Kenya R
ailways, K
enya Pow
er,
Am
arco and U
mem
e Services.
He w
as app
ointed to the C
A B
oard on 29th A
pril 20
16 for a term of three
years.
He exited
the CA
board
on 28th Ap
ril 2019.
PROF. LEV
I OBO
NYO
MR. DAV
ID KITU
R
PA
GE
18
AN
NU
AL REPO
RT20
18 - 2019
Mr. P
aul Kukub
o, MB
S (Born in 1967) is a consultant w
ith vast experience
in the local and reg
ional ICT sector.
Mr. K
ukubo hold
s a Glob
al MB
A from
United
States International University
(USIU
-Africa) and
a Bachelor of A
rts in Econom
ics and Sociolog
y from
the University of N
airobi. A
former chairm
an of the Marketing
Society of
Kenya, M
r. Kukub
o is also a mem
ber of the International A
ssociation of
Business A
nalysis and has p
reviously served as chairm
an of the National
ICT M
aster Plan com
mittee, the Task Force on C
reative Industries and
a
board
mem
ber of M
ultimed
ia University.
He w
as app
ointed to the C
omm
unication Authority of K
enya (CA
)’s
board
on 29th Ap
ril 2016 for a p
eriod of three years. H
e exited the C
A
board
on 28th Ap
ril 2019.
Ms. P
atricia Kim
ama (B
orn in 1973) has over 20 years’ exp
erience in
career sp
anning
across the
banking
, telecom
munication
and
water
industries. She has held
roles in business transform
ation, project, sales,
service and op
erational manag
ement.
She is
currently the
Transformation
Lead
at the
Com
mercial
Bank
of Africa w
here she is charged
with the resp
onsibility of d
riving and
imp
lementing
a legacysetting
strategic transform
ation project for the
CB
A G
roup.
She holds a M
aster’s in Business A
dm
inistration (Strategic M
anagem
ent)
from D
aystar University, a M
asters Certificate in P
roject Manag
ement
from G
eorge W
ashington U
niversity as well as Senior M
anagem
ent
Leadership
training from
Strathmore U
niversity.
She was ap
pointed
to the CA
Board
on 29th Ap
ril 2016 for a p
eriod of
three years. She exited the C
A b
oard on 28th A
pril 20
19.
MR. PA
UL KU
KUBO
, MBS
MS. PATRICIA
KIMA
MA
19P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
Mr. M
ugam
bi N
andi (B
orn in 1971) is an advocate of the H
igh C
ourt of
Kenya, w
ith many years’ exp
erience in corporate and
comm
ercial law.
He is the Senior P
artner at KN
Law LLP, A
dvocates &
Notaries P
ublic,
where he sp
ecializes in merg
ers & acq
uisitions, private eq
uity, capital
market transactions and
energy law
. He is a R
ecognized
Practitioner in
Corp
orate and C
omm
ercial Law ranking
s for Kenya by C
hamb
ers Glob
al
in 2017 and
2018.
He
holds
a B
achelor of
Laws
deg
ree and
a
Master
of B
usiness
Ad
ministration d
egree from
the University of N
airobi, and
a Dip
loma in
Financial M
anagem
ent from the A
CC
A.
He currently sits on a num
ber of b
oards, includ
ing M
ayfair Bank Lim
ited.
He has p
reviously served on the B
oards of the P
rivatization Com
mission,
Seriani Asset M
anagers Lim
ited and
Council for K
enyatta University. H
e
was ap
pointed
to the Board
of Com
munications A
uthority of Kenya in
Ap
ril 2016 for a p
eriod of three years.
He exited
the CA
board
on 28th Ap
ril 2019.
Mr. C
hristopher G
uyo (Born in 1967) is a seasoned
Hum
an Resource
professional w
ith over 22 years’ experience in O
il & G
as Industry (C
altex/
Chevron O
il Kenya Ltd
and K
enya Petroleum
Refineries) and
Banking
sector (Barclays B
ank, Dib
Bank K
enya and P
ostbank) having
served
in various senior manag
ement cap
acities. He is currently the Senior
Technical Ad
visor to the CS – Lab
our and Social P
rotection.
He hold
s an MB
A in H
uman R
esource Manag
ement from
the University
of Nairob
i and currently p
ursuing his D
octor in Business A
dm
inistration
at the Catholic U
niversity of Eastern A
frica. He also hold
s a Bachelor of
Ed
ucation (Arts) d
egree from
Moi U
niversity, Hig
her National D
iplom
a
in HR
M, and
Practitioners D
iplom
a in Executive C
oaching from
Acad
emy
of Executive C
oaching and
an Ad
vanced C
ertificate in Strategic H
R
Manag
ement from
Cornell U
niversity, USA
.
He w
as app
ointed to the C
A b
oard on 29th A
pril 20
16 for a period
of
three years. He exited
the Board
in Septem
ber 20
18.
MR. M
UG
AM
BI NA
ND
IM
R. CHRISTO
PHER G
UYO
PA
GE
20
AN
NU
AL REPO
RT20
18 - 2019
Ms. K
entice Tikolo, OG
W (B
orn in 1964) is a com
munications exp
ert with over 15 years’
experience in Strateg
ic Corp
orate Com
munications and
Pub
lic Relations.
She is the founder and
Manag
ing D
irector of Imp
act Africa Lim
ited, a strateg
ic Pub
lic
Relations &
Com
munications firm
, based
in Nairob
i, Kenya. P
rior to going
to private b
usiness,
Ms. Tikolo w
orked at the K
enya Wild
life Service as the Head
of Corp
orate Com
munications.
Ms. Tikolo hold
s a Master of Science d
egree in P
ublic R
elations from the U
niversity of Stirling
in Scotland, and
a first deg
ree in Ed
ucation from K
enyatta University.
She was ap
pointed
to the Com
munications A
uthority of Kenya’s B
oard on 29th A
pril 20
16 for
a period
of three years. She exited the C
A b
oard o28th A
pril 20
19.
MS. KEN
TICE TIKOLO
, OG
W
21
PA
GE
AN
NU
AL REPO
RT20
18 - 2019
Mr. P
eter Wanjohi (B
orn in 1965) is the Alternate D
irector to the Princip
al
Secretary, Interior and C
oordination of N
ational Governm
ent.
He hold
s an MB
A in E
thno-Musicolog
y from U
niversity of South Africa
(UN
ISA) and
a Bachelor of B
usiness Ad
ministration d
egree from
New
Port U
niversity. He has extensive exp
erience in planning
and coord
inating
international, regional and
local conferences as the current Director of
State functions.
He has b
een a mem
ber of the follow
ing com
mittees: K
enya Vision
2030
, National C
omm
unication Dissem
ination Strategy and
Task Force
on Restructuring
of Hum
an Resource R
equirem
ent of the Perm
anent
Presid
ential Music C
omm
ission, 200
6.
Mr. W
anjohi was ap
pointed
on 7th February 20
18.
Mr. Festus K
ing’ori (B
orn in 1963) is the Alternate D
irector to the Princip
al
Secretary/National Treasury.
He hold
s a Bachelor of C
omm
erce deg
ree from the U
niversity of Nairob
i
and is finalizing
an MB
A from
JKU
AT. H
e also holds a p
ostgrad
uate
certificate in
Investment
Ap
praisal
and
Manag
ement
from
Harvard
University, am
ong others.
He
has also
underg
one extensive
training
in g
eneral m
anagem
ent,
strategic
leadership
and
financial
manag
ement.
He
has extensive
experience in p
ublic p
olicy, particularly w
ith regard
to pub
lic investments,
gained
form local and
international institutions, having
worked
on secondm
ent by the GoK
to the World
Bank.
Mr. K
ingori w
as app
ointed on 10
th May 20
17.
MR. PETER W
AN
JOH
IM
R. FESTUS KIN
G’O
RI
Alternate D
irectors
PA
GE
22
AN
NU
AL REPO
RT20
18 - 2019
Ms. Jud
y Munyinyi M
umo (B
orn in 1971) was the alternate to the P
rincipal
Secretary, State Dep
artment of B
roadcasting
and Telecom
munications,
Ministry of Inform
ation, Com
munications and
Technology (IC
T), at the
CA
Board
.
Ms. M
unyinyi holds a B
achelor’s Deg
ree from D
aystar University and
is
currently pursuing
her Master’s in D
iplom
acy and International Stud
ies
at the University of N
airobi.
She has over 15 years experience in com
munication, sp
ecifically in
Governm
ent com
munication,
med
ia, b
roadcast
med
ia, d
igital
med
ia and d
evelopm
ent comm
unication.
Ms. M
unyinyi has previously served
as Director of R
esearch in the
Presid
ential Strategic C
omm
unications Unit (P
SCU
), State House.
She left the Board
on 2nd M
ay 2019.
Yiap
an Juliana Naship
ae, MB
S (born 1969) is the A
lternate to the Princip
al
Secretary, State Dep
artment of B
roadcasting
and Telecom
munications,
MoIC
T, at the CA
Board
since 3rd M
ay 2019.
She has a Master of B
usiness Ad
ministration (P
ublic Service International)
from The U
niversity of Birm
ingham
in UK
; Master of A
rts in Political
Science and P
ublic A
dm
inistration as well as a B
achelor of Arts D
egree
in Governm
ent, both from
the University of N
airobi.
She has over 20 years exp
erience in Pub
lic Service more sp
ecifically at
MoIC
T, Offi
ce of the Presid
ent and O
ffice of the D
eputy P
resident, in
various positions.
MS. JU
DY MU
NYIN
YIYIA
PAN
JULIA
NA
NA
SHIPA
E, MBS
2 3PAGE
ANNUAL REPORT2018 - 2019
Dr. Catherine Ng’ahu, EBS; (Born in 1961) is the Chairperson of the
Universal Service Advisory Council (USAC).
She holds a PhD in Business Administration from the University of
Nairobi and Professional certificate in Technology and Development
from IPS, UK. She was a Business Research Fellow at Wharton Business
School, University of Pennsylvania, USA. Dr Ngahu is a member of
several Boards.
She is the former chairperson of the Kenya ICT Board and was awarded
‘the Elder of the Order of the Burning Spear’ (EBS) by the President of
the Republic of Kenya in 2011 for devoted service.
She was appointed to USAC in May 2014 for a three-year term and re-
appointed with effect from 8th May, 2017.
Mr. Michael M. Itote (Born in 1954) is a Fellow of the Institute of Certified
Public Accountant (FCPA) of Kenya and a Certified Public Secretary
(CPS) with over 30 years of experience. He has served as the Chairman
of the Institute of Certified Public Accountants of Kenya from 2009 to
2011. He is also a Member of the Institute of Internal Auditors (IIA), the
Institute of Directors, Kenya, and an accredited Governance Auditor.
Mr. Itote is currently a Director/Principal Consultant of Management Audit
Consulting Ltd, which provides consulting services in enterprise risk
management, internal auditing and other governance support services.
He holds a BSc. Accountancy, from the United States International
University Africa.
He was appointed a member of USAC in May 2014 for a period of 3 years
and re-appointed with effect from 9th May 2017
DR. CATHERINE NG’AHU, EBS MR. MICHAEL M. ITOTE
Members of Universal Service Advisory Council (USAC)
PA
GE
24
AN
NU
AL REPO
RT20
18 - 2019
Ms.
Rhod
a M
asaviru; (B
orn in
1956) has
vast w
orking
experience
spanning
over 34 years, m
ost of which w
as in the postal sector, b
oth
in Kenya and
at the African continental level, w
here she held senior
positions,
among
them
Secretary
General
and
Assistant
Secretary
General of the P
an African P
ostal Union (PA
PU
). She also served as a
Manag
er in the defunct K
enya Posts &
Telecomm
unications Corp
oration
and its Successor, P
ostal Corp
oration of Kenya.
Ms. M
asaviru holds a M
aster of Arts d
egree in P
opulation Stud
ies,
University of N
airobi, and
a Bachelor of E
ducation d
egree in E
conomics
and G
eograp
hy, University of N
airobi.
She was ap
pointed
as a mem
ber of U
SAC
in May 20
14 for a p
eriod of 3
years and reap
pointed
with eff
ect from 9th M
ay 2017
Ms. Josep
hine Towett (B
orn in 1967) is an ICT B
usiness expert w
ith
experience sp
anning 20
years in various functional areas that include
Sales and M
arketing, M
arket research, Custom
er service and cap
acity
build
ing. She hold
s a Masters d
egree in B
usiness Ad
ministration and
a
Bachelor’s d
egree in P
olitical Science and Ling
uistics from the U
niversity
of Nairob
i.
Josephine
is also
well
versed
in IC
T cap
acity b
uilding
, R
esearch
and
Consultancy
having
joined
the A
frican A
dvanced
Level
Telecomm
unication Institute (AF
RA
LTI), a regional cap
acity build
ing
intergovernm
ental organisation.
She was ap
pointed
as a mem
ber of U
SAC
in May 20
14 for a p
eriod of 3
years and reap
pointed
with eff
ect from 9th M
ay 2017.
MS. RH
ODA
MA
SAVIRU
MS. JO
SEPHIN
E TOW
ETT
25
PA
GE
AN
NU
AL REPO
RT20
18 - 2019
Am
b. W
ellington P
akia God
o (Born in 1953) has served
the Kenyan
governm
ent for over three decad
es. He has risen throug
h the ranks and
served as a P
ermanent Secretary in various areas includ
ing the O
ffice of
the Vice P
resident and
the Ministry of R
egional D
evelopm
ent.
He also served
as the Perm
anent Rep
resentative in the Kenyan M
ission
to the United
Nations E
nvironmental P
rogram
me (U
NE
P).
Am
b. G
odo hold
s a Master of Social Science from
the University of
Birm
ingham
, United
King
dom
and a B
achelor of Arts d
egree from
the
University of N
airobi w
here he majored
in Governm
ent and Sociolog
y.
He w
as app
ointed as a m
emb
er of USA
C in M
ay 2014
for a period
of 3
years and reap
pointed
with eff
ect from 9th M
ay.
Mr. N
ixon Mag
eka Gecheo; (B
orn in 1976) is a Governance and
ICT for
Develop
ment (IC
T4D
) expert w
ith over 12 years ICT exp
erience and 4
years experience consulting
for large d
onor, private and
pub
lic sector
organisations.
He is the im
med
iate former IC
T and M
edia A
dvisor to the C
abinet
Secretary, M
inistry of
Ag
riculture. H
e w
orked
at the
Offi
ce of
the
Om
bud
sman and
East A
frican Business C
ouncil in Arusha.
Mr. G
echeo holds a M
aster’s in Com
munication M
anagem
ent from K
igali
Institute of Science and Technolog
y, Rw
anda and
BSc. in Inform
ation
Technology from
JKU
AT.
He w
as app
ointed as a m
emb
er of USA
C in M
ay 2014
for a period
of 3
years and reap
pointed
with eff
ect from 9th M
ay 2017.
AM
B. WELLIN
GTO
N PA
KIA G
OD
OM
R. NIXO
N M
AG
EKA G
ECHEO
PA
GE
26
AN
NU
AL REPO
RT20
18 - 2019
Dr. K
ennedy J. O
kong’o; (B
orn in 1982) is a certified P
roject Manag
er
and a hold
er of PhD
in Information System
s from the U
niversity of Cap
e
Town, South A
frica.
He has a p
ractical policy and
a research experience in the IC
T for
Develop
ment (IC
T4D
) space. In b
oth private and
pub
lic sectors, he has
consulted in A
frica and b
eyond as a b
usiness analyst, policy researcher
and a p
roject manag
er.
He has b
road corp
orate experience and
is a Professional M
emb
er of
Com
puter Society of K
enya (CSK
).
He w
as app
ointed as a m
emb
er of USA
C in M
ay 2014
for a period
of
three years and reap
pointed
with eff
ect from 10
th Aug
ust 2017.
Mr. Long
ole Wang
iros James ; (B
orn in 1975) is a particip
ation specialist
with over 10
years’ experience w
orking w
ith International NG
Os, q
uasi-
governm
ent and G
overnment institutions. H
is sectoral expertise includ
es
rural develop
ment, conflict transform
ation and hum
anitarian assistance
with a g
eograp
hical focus on the Great H
orn of Africa.
He also serves as the C
hairman of the B
oard of M
anagem
ent for
Loima B
oys Secondary School in Loim
a Sub-C
ounty. James hold
s a
Master’s D
egree in Sociolog
y and, a P
ost Grad
uate Dip
loma in C
onflict
Manag
ement and
Peace Stud
ies from M
akerere and G
ulu Universities
respectively.
He w
as app
ointed as a m
emb
er of USA
C in M
ay 2014
for a period
of
three years and reap
pointed
with eff
ect from 10
th Aug
ust 2017.
DR. KEN
NEDY J. O
KON
G’O
MR. LO
NG
OLE W
AN
GIRO
S JAM
ES
27
PA
GE
AN
NU
AL REPO
RT20
18 - 2019
Mr. Sam
uel Mutung
i; (Born in 1955) has over 30
years’ experience in IC
T and corp
orate business
leadership
. He has served
in various key executive manag
ement p
ositions at Co-O
perative B
ank of
Kenya includ
ing D
irector Op
erations, Director R
etail Banking
, Director C
orporate B
anking and
Chief
Manag
er ICT.
He hold
s a M.Sc. d
egree in B
usiness Systems A
nalysis & D
esign from
City U
niversity, London and
a
Bachelor of E
ducation d
egree in M
athematics and
Business Stud
ies from the U
niversity of Nairob
i.
He also hold
s a Dip
loma in E
lectronic Data P
rocessing from
Daw
son Colleg
e, Montreal C
anada.
He w
as app
ointed to the U
niversal Service Ad
visory Council in M
ay 2014
for a three-year term and
re-app
ointed w
ith effect from
10th A
ugust 20
17.
MR. SA
MU
EL MU
TUN
GI
PA
GE
28
AN
NU
AL REPO
RT20
18 - 2019
Mr. F
rancis W. W
angusi, M
BS w
as the Director G
eneral of the Com
munications
Authority of K
enya.
Mr. W
angusi is currently p
ursuing a P
hD in M
anagem
ent. He hold
s a M
aster’s Deg
ree in Space Sciences (Satellite C
omm
unications); BSc d
egree
(Telecomm
unications Eng
ineering); C
harted E
ngineer-U
K C
ertificate and
Glob
al Executive M
asters Deg
ree in Business A
dm
inistration (GE
MB
A).
His term
ended
on 21st Aug
ust 2019.
CPA
Josep
h K
imang
a is
the D
irector, Finance &
Accounts at the C
omm
unications A
uthority of Kenya.
He
holds
a M
aster’s d
egree
in B
usiness A
dm
inistration (Finance) and
a Bachelor
of Ed
ucation (Arts) d
egree in E
conomics &
B
usiness Studies.
He is a C
ertified P
ublic A
ccountant of Kenya-
CPA
(K).
Mr.
John O
mo
was
the D
irector, Legal
Services at the Com
munications A
uthority of K
enya.
He
holds
a M
aster’s of
Laws
deg
ree, a
Bachelors of Law
deg
ree as well as D
iplom
as in Law
and Leg
al Practice E
thics.
He
exited
the C
A
Manag
ement
on 31st
Decem
ber 20
18.
Mr.
Juma
Kand
ie is
the D
irector, H
uman
Capital
&
Adm
inistration at
the C
omm
unications Authority of K
enya.
He
holds
an M
Sc in
Hum
an R
esource M
anagem
ent, a
Bachelor
of C
omm
erce d
egree as w
ell as a Post G
raduate C
ertificate in Strateg
y.
Mrs.
Mercy
Wanjau
is the
Acting
Director
General,
Com
munications
Authority of K
enya. Previously, D
irector, Legal services, since 1st of January
2019.
She holds a M
aster’s deg
ree in Law from
the University of C
ape Tow
n, D
egree in Law
from the U
niversity of Nairob
i.
She is a Certified
Governance A
uditor w
ith ICP
SK, an associate of the
Chartered
Institute of Arb
itrators and an ad
vocate of the Hig
h Court of
Kenya.
MR. FRA
NCIS W
. WA
NG
USI, M
BS
CPA JO
SEPH KIM
AN
GA
MR. JO
HN
OM
OM
R. JUM
A KA
ND
IE
MRS. M
ERCY WA
NJA
U
Managem
ent Team
29
PA
GE
AN
NU
AL REPO
RT20
18 - 2019
Eng
. Leo
K.
Boruett
is the
Director,
Multim
edia Services at the Com
munications
Authority of K
enya.
He
holds
a M
Phil
Deg
ree in
Information
Eng
ineering;
BSc
Deg
ree in
Electrical
and
Electronics
Eng
ineering;
Reg
istered
Professional
Eng
ineer-EB
K;
and
Executive
Master’s D
egree in B
usiness Ad
ministration.
Mr.
Matano
Nd
aro is
the D
irector, C
ompetition, Tariff
s and Market A
nalysis at the C
omm
unications Authority of K
enya.
He
is currently
pursuing
a
Master’s
of B
usiness Ad
ministration d
egree and
holds
a Bachelor of A
rts deg
ree in Econom
ics and
a Post G
raduate D
iplom
a in Reg
ulation of Telecom
munications.
Mr.
Christop
her K
emei
is the
Director,
Licensing, Com
pliance and Standards at the C
omm
unications Authority of K
enya.
He
holds
an M
Sc in
Op
erational Telecom
munications, and
Bsc. in P
hysics.
Mr.
Christop
her W
amb
ua is
the D
irector, C
onsumer
and Public
Aff
airs at
the C
omm
unications Authority of K
enya.
He hold
s a Master’s d
egree in International
Studies,
a p
ostgrad
uate d
iplom
a in
Mass
Com
munications,
a p
ostgrad
uate d
iplom
a in
Pub
lic R
elations from
the
Chartered
Institute of P
ublic R
elations and a d
egree in
Ed
ucation.
Mr.
Tom
Olw
ero is
the D
irector, Frequency
Spectrum
Managem
ent at
the C
omm
unications Authority of K
enya.
He
holds
a B
Sc in
Electrical
Eng
ineering
and
a M
aster of
Business
Ad
ministration
(Manag
ement).
Mr.
Michael
Katund
u is
the D
irector, Inform
ation Technology
and Enterprise
Resource
Managem
ent at
the C
omm
unications Authority of K
enya.
He is a hold
er of an MSc in C
omp
uter Science and
a BSc in C
omp
uter Science.
ENG
. LEO K. BO
RUETT
MR. M
ATAN
O N
DARO
MR. CH
RISTOPH
ER KEMEI
MR. CH
RISTOPH
ER WA
MBUA
MR. TO
M O
LWERO
MR. M
ICHA
EL KATUN
DU
PA
GE
30
AN
NU
AL REPO
RT20
18 - 2019
CPA
. Rosalind
Murithi is the D
irector, Risk M
anagement and
Internal Audit at the C
omm
unications Authority of K
enya.
She holds a M
aster of Business A
dm
inistration, Bachelor of
Com
merce D
egree.
She is a Certified
Pub
lic Accountant of K
enya - CPA
(K).
Mr. V
incent Ng
undi is the A
ssistant Director, C
yber Security and E- C
omm
erce at the Com
munications A
uthority of Kenya (C
A).
He hold
s a Bachelor of Science d
egree in C
omp
uter Science, and
a Glob
al Executive M
BA
.
Ms. Jane R
otich is the Acting A
ssistant Director, Procurem
ent at the C
omm
unications Authority of K
enya (CA
).
She holds a M
aster’s deg
ree in Business A
dm
inistration (Strategic
Procurem
ent); Bachelor of A
rts deg
ree and a P
ostgrad
uate D
iplom
a in Purchasing
and Sup
plies.
CPA RO
SALIN
D M
URITH
I
MR. V
INCEN
T NG
UN
DI
MS. JA
NE RO
TICH
31
PA
GE
AN
NU
AL REPO
RT20
18 - 2019
Message from
the Chairman
I am p
leased to p
resent to you, on behalf of the B
oard of D
irectors, Manag
ement and
Staff of the C
omm
unications Authority of K
enya, the Annual R
eport for the
financial year ended
30th June 20
19 in accordance w
ith Section 22(1) of the Kenya Inform
ation and C
omm
unications Act, 1998.
As the reg
ulator of the ICT sector, the A
uthority is cognizant of the central role that the sector p
lays as a key enabler of g
rowth in all other sectors of the econom
y and
as one of the foundations of national transform
ation and realization of b
oth Vision 20
30 and
the Gig
4 A
gend
a. The Vision 20
30 aim
s at creating “a g
lobally
comp
etitive and p
rosperous country w
ith a high q
uality of life by the year 2030
”.
While Inform
ation and C
omm
unications Technologies (IC
Ts) are a critical enabler of V
ision 2030
, they are also expected
to be a key d
riving force tow
ards the
realization of the Governm
ent’s Big
4 A
gend
a, which is focusing
on the key priority areas of Ind
ustrialization, Manufacturing
and A
gro-p
rocessing; A
fford
able
Housing
; Food and
Nutrition Security; and
Universal H
ealth Coverag
e (UH
C).
The Authority has im
plem
ented the first year initiatives of its Strateg
ic Plan for the p
eriod 20
18-2023. D
uring this year, the A
uthority facilitated rap
id g
rowth of the
sector and sup
ported
realization of the Big
4 A
gend
a by fast-tracking IC
T related reg
ulatory and universal access initiatives. The A
uthority continued to facilitate
achievement of universal access to IC
T services by brid
ging
the gap
in the provision of IC
T services in un-served and
under-served
areas of the country. Toward
s this end
, the Authority continued
the rollout of its USF
- funded
initiatives, that is, the Ed
ucation Broad
band
and V
oice Infrastructure Projects.
A com
petitive and
robust IC
T sector contributes to the national econom
y and has the p
otential to transform trad
itional economies into d
igital econom
ies. It also enhances consum
er choice as well as availab
ility of diverse and
more aff
ordab
le ICT services. In this reg
ard, the A
uthority continued to im
plem
ent forward
-looking
regulation to foster com
petitive and
efficient m
arkets in the ICT sector.
The Authority has a resp
onsibility to enhance online security, by ad
dressing
the rapid
evolution of the glob
al cyber threat land
scape. Tow
ards this end
, the A
uthority enhanced the cap
abilities of the N
ational KE
-CIR
T/CC
, broad
ened m
ulti-stakeholder eng
agem
ent, undertook technical training
for the local Sector C
omp
uter Incident R
esponse Team
(CIR
Ts), and p
romoted
a culture of cyber security throug
h various pub
lic awareness and
engag
ement activities. These initiatives
enhanced K
enya’s proactive resp
onse to cyber threats.
The Authority is com
mitted
to transform the lives of all in K
enya through continuous facilitation of an enab
ling environm
ent for provision of IC
T services. This will
greatly b
enefit consumers as w
ell as further the grow
th and increased
contribution of the IC
T sectortow
ards the country’s G
ross Dom
estic Prod
uct (GD
P).
I comm
end the B
oard of D
irectors, Manag
ement and
mem
bers of staff
for their resilience in delivering
the achievements d
uring the year.
Ngene B
. Gituku, EB
SC
hairperson of the Board
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The grow
th of the ICT sector in K
enya continued on an upw
ard trend
, contributing
to the country’s GD
P. This grow
th was attrib
uted to increased
dig
itization and
continuous uptake of IC
T services. In line with our m
andate and
strategic ob
jectives, the following
are the highlig
hts of the activities undertaken.
During
the year, more K
enyans continued to access IC
T services with m
obile telep
hony subscrib
ers rising to 52,168,0
66 from 4
5,568,924 record
ed in the p
revious year. The increase in m
obile sub
scription facilitated
the increase in mob
ile money transfer sub
scription from
29,678,063 in the F
Y 20
17/18 to 32,634,883 in the
FY
2018/19. In ord
er to increase consumer choice and
comp
etition among
service provid
ers, wallet-to-w
allet interoperab
ility of person-to-p
erson mob
ile money
transfer was launched
in Kenya. This enab
les customers of d
ifferent m
obile service p
roviders to receive m
oney directly into their m
obile w
allets.
To prom
ote security of peop
le and critical infrastructure, the A
uthority undertook various initiatives aim
ed at enhancing
the nationalcyb
er readiness and
resilience. This entailed, am
ong others, the enhancem
ent of the capab
ilities of the National K
E- C
IRT/C
C, and
prom
oting a national culture of
cyber security throug
h various pub
lic awareness and
engag
ement activities.
In a bid
to prom
ote the use and ad
option of the d
ot KE
country code top
-level dom
ain, the Authority, in consultation w
ith the industry, d
eveloped
a Restricted
and
Reserved
Nam
e List for the dom
ain namesp
ace. This is aimed
at curbing
abusive d
omain nam
e registrations. In ad
dition, the A
uthority introduced
a new
numb
ering level -0
100
- with a cap
acity of 100
billion num
bers to cater for the envisioned
Machine-to-M
achine services.
In its effort to em
pow
er consumers, the A
uthority availed consum
er advisory inform
ation targeting
users of mob
ile, Internet, postal and
courier services. In ad
dition, the A
uthority availed inform
ation on e-waste and
guid
elines for the Child
Online P
rotection (CO
P). The A
uthority also held a C
ounty ICT C
onsumer
Forum d
ubb
ed ‘K
ikao Kikuu’ in K
isumu C
ounty. This forum p
rovided
a platform
to engag
e ICT service p
roviders, consum
ers of ICT and
the County G
overnment
on various ICT consum
er issues.
In conclusion, the achievements m
entioned w
ould not have b
een possib
le without the contrib
ution of the Authority’s d
edicated
staff. I also w
ish to express m
y g
ratitude to the A
uthority’s Board
of Directors and
the Ministry of Inform
ation, Com
munications and
Technology for their continued
supp
ort.
Mrs. M
ercy Wanjau
Acting D
irector General
Message from
the Director G
eneral
33
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Preamble
Establishment and M
andate of the Authority
The Kenya C
omm
unications Act N
o.2 of 1999 (KC
A) estab
lished the A
uthority in 1999 with a m
andate to license and
regulate the IC
T sector. The KC
A has since
been am
ended
a numb
er of times, m
ost notably in 20
09 to K
enya Information and
Com
munications A
ct, 1998 (KIC
A). The K
ICA
expand
s the Authority’s role to
license and reg
ulate the broad
casting and
e-comm
erce sectors as well as the estab
lishment of the U
niversal Service Fund
(USF
). Further am
endm
ents becam
e necessary in 20
13 to confer the Authority g
reateroperational autonom
y in imp
lementation of A
rticles 34 and
35 of the Constitution of K
enya, 2010
on freedom
of m
edia and
access to information, resp
ectively.
Ad
ditionally, the 20
13 amend
ments to the K
ICA
charged
the Authority w
ith the responsib
ility to prom
ote and facilitate effi
cient manag
ement of the Internet
resource as well as to d
evelop a fram
ework for facilitating
the investigation and
prosecution of cyb
ercrime off
ences. It further reinforced the A
uthority’s role in m
anaging
comp
etition in the sector. The Authority is also entrusted
with the resp
onsibility of facilitating
the develop
ment of p
ostal and courier, telecom
munications,
radio com
munications, b
roadcasting
and electronic transactions in K
enya through ad
option of the b
est practice reg
ulation and m
ost app
ropriate technolog
ies.
Corporate Governance
As a State C
orporation, the A
uthority is expected
to ensure comp
liance with the p
rinciples of g
ood g
overnance that are entrenched in A
rticle 10 of the C
onstitution, the State C
orporations A
ct, 2016 and
the Cod
e of Governance for State C
orporations (M
wong
ozo). The princip
les of good
governance seek to ensure effi
ciency, eff
ectiveness, transparency, d
isclosure, accountability, risk m
anagem
ent, internal controls, ethical leadership
as well as g
ood corp
orate citizenship in execution of
the Authority’s m
andate.
Board of Directors
In accordance w
ith Section 6(1) of the KIC
A, the B
oard of D
irectors of the Authority consists of a C
hairperson ap
pointed
by the Presid
ent in accordance w
ith section 6B
of the (KIC
A); three (3) P
rincipal Secretaries resp
onsible for m
atters relating to b
roadcast, electronic, p
rint and all other typ
es of med
ia; finance; and
internal security as well as seven (7) p
ersons app
ointed by the C
abinet Secretary resp
onsible for IC
T, in accordance w
ith section 6B of the K
ICA
. Section 11(2) of K
ICA
provid
es for the position of the D
irector General, w
ho is the Chief E
xecutive Offi
cer of the Authority and
an ex-officio M
emb
er of the Board
. The Director
General is also the Secretary to the B
oard and
is responsib
le for the day-to-d
ay manag
ement of the A
uthority.
Functions of the Board of Directors
The Board
Charter sets out the sp
ecific responsib
ilities to be d
ischarged
by the Board
of Directors ind
ividually and
collectively. These includ
e:
i) E
xercising lead
ership, integ
rity and jud
gm
ent in directing
the Authority;
ii) Setting
the vision, mission and
values of the Authority;
iii) D
eveloping
strategies to achieve the A
uthority’s mand
ate;
iv) D
etermining
key perform
ance indicators (K
PIs) of the A
uthority, setting targ
ets and m
onitoring p
erformance;
v) E
nsuring that internal structures and
policies are in p
lace;
vi) Id
entifying and
manag
ing key risk areas; and
vii) E
nsuring p
reparation of annual financial statem
ents and rep
orts and d
isclosure of information to stakehold
ers.
Board Meetings
Pursuant to Section 8(1) (a) of the State C
orporations A
ct, Cap
44
6, the Board
of every State Corp
oration should m
eet at least four (4) tim
es in every financial year. D
uring the F
Y 20
18/19, the Board
held six (6) F
ull Board
Meeting
s and tw
o (2) Special M
eetings.
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Board Comm
itteesSection 9 of the A
ct bestow
s the Board
with the p
owers to d
elegate the exercise of any of its functions or d
uties to Com
mittees. The
Com
mittees op
erate within the term
s of reference develop
ed by the B
oard. D
uring the year in review
, the Board
deleg
ated som
e of its functions and d
uties to the follow
ing C
omm
ittees.
i. Finance Comm
itteeThis C
omm
ittee has oversight resp
onsibility on all financial m
anagem
ent issues at the Authority. It consists of six (6) M
emb
ers. The Com
mittee m
et Seven (7) tim
es during
this period
.
ii. Technical Matters Com
mittee
This Com
mittee hand
les technical issues including
granting
of licenses, review of the m
arket structure and other reg
ulatory interventions. It consists of six (6) M
emb
ers. The Com
mittee held
five (5) meeting
s during
the period
in review.
iii. Staff and A
dministration Com
mittee
This Com
mittee is resp
onsible for hum
an resource and ad
ministrative m
atters. It consists of six (6) mem
bers. The C
omm
ittee held four (4
) meeting
s during
the p
eriod.
iv. Broadcasting Standards Comm
itteeThis C
omm
ittee sets med
ia standard
s, regulates and
monitors com
pliance w
ith those standard
s. It consists of six (6) Mem
bers. The C
omm
ittee held three (3)
meeting
s during
the period
.
v. Board Audit and Risk M
anagement Com
mittee
This Com
mittee com
prises four (4
) Mem
bers. The C
omm
ittee provid
es oversight by off
ering ob
jective advice and
recomm
endations
to the Board
on whether the A
uthority’s governance, risk m
anagem
ent, and internal control p
rocesses are suitably d
esigned
and w
orking as intend
ed to achieve
the objectives. The C
omm
ittee held five (5) m
eetings d
uring the p
eriod.
Risk Managem
ent and Internal Control Systems
The Authority’s B
oard is charg
ed w
ith the responsib
ility of ensuring that m
anagem
ent maintains an eff
ective system of risk m
anagem
ent and internal controls for
reviewing
its effectiveness. This system
is desig
ned to m
anage the risk of failure to achieve the
Authority’s ob
jectives and to p
rovide reasonab
le assurance against m
aterial misstatem
ent or loss.
i. Risk Managem
entThe A
uthority has in place a R
isk Manag
ement P
olicy Fram
ework, w
hich defines the resp
onsibilities of the A
uthority’s Board
Aud
it and R
isk Com
mittee as w
ell as M
anagem
ent to enable eff
ective risk identification, evaluation and
manag
ement. D
uring the F
Y 20
18/19, the following
key risks that could have financial,
strategic and
operational im
pact on the org
anizational perform
ance, reputation and
operations w
ere identified
: inadeq
uate uptake of technolog
y; non-comp
liance by licensees; cyb
er and inform
ation security threats; inordinate d
elay in legislative issues; inad
equate p
ublic aw
areness on Authority’s m
andate; litig
ations and
governance risk. B
ased on the id
entified risks, the A
uthority reviewed
the proced
ure manuals, risk reg
ister and alig
ned them
to its Strategic P
lan 2018-23.
ii.Internal Control Systems
The Authority’s internal controls p
rocesses are desig
ned to p
rovide reasonab
le assurance regard
ing the achievem
ent of objectives,relating
to efficiency and
eff
ectiveness of operations, reliab
ility of financial reporting
, and com
pliance w
ith app
licable law
s and reg
ulations. Manag
ement has the resp
onsibility of p
roper
steward
ship of State resources. To achieve this, M
anagem
ent has put in p
lace systems of internal control, w
hich include ap
proved
policies and
proced
ures that d
etail the operational and
financial controls. The Authority continuously m
onitored ad
herence to these systems d
uring its d
ay-to-day b
usiness processes by
undertaking
audits in conform
ance to the Internal Aud
it Charter and
International Aud
iting G
uidelines and
Standard
s.
35
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ICT Sector Statistics at a Glance
Universal Service A
dvisory CouncilSection 84
J of the Kenya Inform
ation and C
omm
unications Act, 1998 (as am
ended
), and the K
enya Information and
Com
munications
(Universal A
ccess and Service) R
egulations, 20
10 p
rovides for the estab
lishment of the U
niversal Service Fund
(USF
) to be m
anaged
and ad
ministered
by the Authority. Section 10
2A of the A
ct established
USA
C to p
rovide strateg
ic policy g
uidance for the ad
ministration
of the Fund
on behalf of the B
oard of the A
uthority. The Fund
was created
to supp
ort wid
espread
access to, supp
ort capacity b
uilding
and p
romote innovation in IC
T services. USA
C consists of a C
hairperson and
eight (8) M
emb
ers app
ointed by the C
abinet Secretary,
responsib
le for comm
unications pursuant to Section 10
2K of the A
ct. The USA
C held
five (5) meeting
s during
the year
Compliance w
ith Code of Governance for State Corporations (M
wongozo)
The Authority continues to stream
line and ensure im
plem
entation and com
pliance w
ith the provisions of M
wong
ozo in its organizational
as well as op
erational structure through ad
ministrative and
legislative actions. In this reg
ard, the A
uthority has prop
osed am
endm
entsof p
rovisions of KIC
A to alig
n it with M
wong
ozo.
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Following
the end of its 3rd
(pub
lished) Strateg
ic Plan 20
13-18 on 30th June 20
18, the Authority finalized
develop
ment of its 4
th Strategic P
lan 2018-23. The 4
th Strateg
ic Plan re-focuses the A
uthority’s strategic d
irection for the period
2018-23. It is alig
ned to the V
ision 2030
, Third M
edium
Term P
lan (MTP
III), Big
Four A
gend
a, Africa U
nion Ag
enda 20
63 and the U
nited N
ations (UN
) Sustainable D
evelopm
ent Goals (SD
Gs). The vision of the A
uthority in the Strategic P
lan is to d
igitally transform
our nation.
The Strategic P
lan covers three (3) Key R
esult Areas (K
RA
s), and is b
eing im
plem
ented throug
h eight (8) strateg
ic objectives and
fourteen strategic initiatives.
It is founded
on the core values of integrity, innovation and
excellence. It guid
es the Authority on its m
ission of build
ing a connected
society through enab
ling
regulation, p
artnership and
innovation, in pursuit of fulfillm
ent of its brand
prom
ise, ‘opening
your world
’.
A hig
h-level summ
ary of the Authority’s 4
th Strategic P
lan 2018-23 is show
n below
.
The Strategic Plan 2018-23
During
the FY
2018/19, the A
uthority imp
lemented
year one strategic initiatives and
associated activities in the Strateg
ic Plan. This w
as aimed
at facilitating the
grow
th and d
evelopm
ent of the country’s ICT sector.
37
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Corporate Organization Structure
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CHAPTE
R
IM
ACRO
ECON
OM
IC ENV
IRON
MEN
TA
ND
ICT SECTOR
41
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World
economies are interd
epend
ent in nature and have linkag
es to various sectors in a country’s economy. U
nderstand
ing chang
es in the glob
al and reg
ional econom
ies is imp
ortant in app
reciating chang
es in various sectors in an economy. Inform
ation and C
omm
unication Technologies (IC
Ts) are key in transforming
trad
itional economies to d
igital econom
ies. Dig
ital technologies transform
prod
uction of good
s and services; enhance innovations and
interactions betw
een firm
s and their stakehold
ers. Dig
ital technologies not only im
prove firm
prod
uctivity, but also continue to p
lay a significant role in achieving
sustainable hum
an d
evelopm
ent, poverty erad
ication, national security and international com
petitiveness. This chap
ter focuses on the various glob
al, regional and
country–specific
economic ind
icators, which m
ight have inform
ed various IC
T trends and
policies d
uring the year.
1.1 Macroeconom
ic Environment
The perform
ance of the ICT sector is influenced
by both g
lobal and
local macroeconom
ic environment.
1.1.1 Global Econom
yA
ccording
to the 2019 W
orld E
conomic O
utlook (WE
O)1 R
eport, the g
lobal G
ross Dom
estic Prod
uct (GD
P) g
rowth rate d
ecline to 3.6 per cent in 20
18 from 3.8
per cent record
ed in 20
17. The decelerated
grow
th is mainly attrib
uted to trad
e tensions b
etween the U
nited States of A
merica (U
SA) and
China, uncertainty
surrounding
British exit (B
rexit) from the E
uropean U
nion (EU
), decline in b
usiness confidence, tig
htening of financial and
trade cond
itions as well as p
olicy uncertainties across several econom
ies. In add
ition, a comb
ination of country- and sector-sp
ecific factors further exacerbated
the slowed
grow
th. A
dvanced
economies exhib
ited a slow
ed g
rowth rate of 2.2 p
er cent in 2018 com
pared
to 2.4 p
er cent in 2017. This w
as attributed
to weakening
consumer and
b
usiness sentiments, fiscal p
olicy uncertainties, political and
civil protests as w
ell as delays in introd
ucing the new
fuel emission stand
ards for d
iesel-pow
ered
vehicles in Germ
any. Similarly, g
rowth in em
erging
markets and
develop
ing econom
ies declined
from 4
.8 per cent in 20
17 to 4.5 p
er cent in 2018. This d
ecline was
mainly d
ue to policy and
regulatory tig
htening lead
ing to a d
ecrease in business confid
ence and slow
ed d
omestic investm
ents.
In Africa, som
e countries experienced
imp
roved econom
ic conditions resulting
in the continent’s overall GD
P g
rowth rate rem
aining fairly stab
le in 2018 at 3.5 p
er cent, w
hich is expected
to increase to 4 p
er cent in 2019
2. While non-resource-rich countries—
supp
orted by hig
her agricultural p
roduction, increasing
consumer
dem
and, and
rising p
ublic investm
ent—g
rew fastest (Seneg
al, 7 percent; R
wand
a, 7.2 percent; C
ôte d’Ivoire, 7.4
percent), the tw
o largest econom
ies slowed
dow
n A
frica’s average g
rowth (N
igeria 1.9 p
er cent and South A
frica 1.2 per cent).
Accord
ing to the A
frica Econom
ic Outlook (A
EO
) Rep
ort 2019, E
ast Africa w
as the fastest grow
ing reg
ion in Africa w
ith an estimated
GD
P g
rowth rate of 5.7 p
er cent in 20
18. This was attrib
uted to the recovery of ag
riculture, services and ind
ustrial sectors as well as investm
ent in pub
lic infrastructure in Kenya, U
gand
a and
Rw
anda resp
ectively. The Kenya E
conomic Survey 20
19 estimates that E
ast African C
omm
unity (EA
C) inflation rate d
ecreased from
6.5 per cent in 20
17 to 4.2 p
er cent in 20
18.
1.1.2 Local Economy
Kenya’s m
acroeconomic environm
ent remained
fairly stable w
ith real GD
P estim
ated to have exp
anded
by 6.3 per cent in 20
18 comp
ared to 5.9 p
er cent in 2017
(Econom
ic Survey 2019). This g
rowth w
as attributed
to sustained d
evelopm
ent in the transport sector, accelerated
manufacturing
activities as well as the increased
ag
ricultural prod
uction. The Ag
riculture, Forestry and F
ishing sub
-sector recorded
an accelerated g
rowth rate of 6.4
per cent from
1.9 per cent record
ed in 20
17 w
hile the Manufacturing
Sector recorded
a grow
th of 4.2 p
er cent from 0
.5 per cent rep
orted in the p
revious year. Similarly, E
lectricity Supp
ly; Transportation and
Storag
e; ICT; A
ccomm
odation and
Food services show
ed rem
arkable g
rowth of 10
.5 per cent, 8.8 p
er cent, 11.4 p
er cent and 16.6 p
er cent, respectively.
1.2 Information and Com
munication Technology Sector
The local ICT sector is influenced
by the perform
ance in the glob
al ICT arena.
1.2.1 Global ICTs
Glob
al ICT trend
s continue to indicate increased
grow
th in mob
ile-cellular services, Internet services and b
roadb
and services. E
merg
ing technolog
ies such as A
rtificial Intelligence (A
I), Internet of Things (IoTs) and
block chain technolog
y bolstered
the increased g
rowth.
Fig
ure 1.1 shows a snap
shot of the aforementioned
ICT trend
s.
1 https://w
ww
.imf.org
/en/Pub
lications/WE
O/Issues/20
19/07/18/W
EO
upd
ateJuly2019.
2 https://w
ww
.afdb
.org/filead
min/up
loads/afd
b/D
ocuments/P
ublications/20
19AE
O/A
EO
_2019-E
N.p
df
1. Macroeconom
ic Environment and ICT Sector
PA
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Figure 1.1: Global IC
T Indicators
Figure 1.2: Regional M
obile Cellular Penetration
1.2.1.1 Mobile Cellular Services
Access to b
asic mob
ile telecomm
unication services has been on a continued
upward
trajectory over the past years. G
lobal m
obile-cellular sub
scriptions g
rew
from 7.81 b
illion in 2017 to 8.16 b
illion in 2018, w
hich is equivalent to 10
7.0 sub
scriptions p
er 100
inhabitants. This has larg
ely been d
riven by significant g
rowth in
subscrip
tions in Asia-P
acific and C
omm
onwealth of Ind
epend
ent States (CIS)
3. In 2018, the C
IS recorded
the highest p
enetration rate of 136.8 per cent w
hile Africa
recorded
the lowest at 76.0
per cent. F
igure 1.2 show
s regional m
obile cellular p
enetration.
Overall, over the p
ast two d
ecades, the level of m
obile-cellular sub
scriptions in d
eveloping
countries has surpassed
that of develop
ed countries as illustrated
in F
igure 1.3.
3 Reg
ions are based
on the ITU B
DT R
egions, see: http
://ww
w.itu.int/en/ITU
D/Statistics/P
ages/d
efinitions/regions.aspx.htm
l.
Note: * E
stimate
Source: ITU W
orld Telecom
munication/IC
T Indicators D
atabase
Note: *E
stimate
Source: ITU W
orld Telecom
munication / IC
T Ind
icators datab
ase
Note: *E
stimate **C
omm
onwealth of Ind
epend
ent States
Source: ITU W
orld Telecom
munication /IC
T Indicators d
atabase
Figure 1.3: Mobile C
ellular Subscriptions by Level of Developm
ent
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Figure 1.4: G
lobal Internet Usage
1.2.1.2 Internet ServicesThe ITU
estimated
that by the end of 20
18, more than half of the g
lobal p
opulation w
as using Internet. The p
ercentage of p
opulation using
the Internet in d
eveloped
, develop
ing and
least develop
ed countries continued
to show sustained
grow
th in 2018 estim
ated at 80
.9 per cent, 4
5.3 per cent and
19.5 per cent,
respectively. A
ccording
to the ITU, in 20
18 it is estimated
that Europ
e had the hig
hest prop
ortion of Internet users, with 79.6 p
er cent; Am
ericas, with 69.6 p
er cent; C
omm
onwealth of Ind
epend
ent States (CIS) w
ith 71.3 per cent; A
rab States w
ith 54.7 p
er cent; Asia- P
acific with 47 p
er cent; and A
frica with 24
.4 p
er cent. The reg
ional distrib
ution of individ
uals using the Internet is show
n in Fig
ure 1.4.
Internet usage in household
s is increasingly g
aining m
omentum
all over the world
, with 57.4
per cent of the g
lobal household
s having access to Internet. E
urope
recorded
the highest num
ber of household
s with access to Internet at 82 p
er cent while A
frica had the low
est at 22 per cent.
1.2.1.3 Broadband ServicesG
lobal m
obile b
roadb
and sub
scriptions g
rew from
4.7 b
illion in 2017 to 5.3 b
illion in 2018, translating
to a 69.3 per cent p
enetration rate. Overall, d
eveloping
countries reg
istered hig
her grow
th in mob
ile broad
band
subscrip
tions comp
ared to d
eveloped
countries. How
ever, mob
ile broad
band
penetration rates for
develop
ing and
develop
ed countries in 20
18 were estim
ated at 61 p
er cent and 111.2 p
er cent, respectively. The hig
hest grow
th in mob
ile broad
band
subscrip
tions w
ere observed
in Asia-P
acific, the Arab
States and A
frica, whose p
enetration rates were estim
ated at 68.3 p
er cent, 62,7 per cent and
29.7 per cent, resp
ectively. This is show
n in Fig
ure 1.5.
Note: *E
stimate **C
omm
onwealth of Ind
epend
ent States
Source: ITU W
orld Telecom
munication /IC
T Indicators d
atabase
Note: * E
stimate **C
omm
onwealth of Ind
epend
ent States
Source: ITU W
orld Telecom
munication /IC
T Indicators d
atabase
Figure 1.5: Regional M
obile Broadband Penetration 20
18*
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1.2.2 Local ICTsThe contrib
ution of ICT sector to G
DP
as well as g
rowth is sum
marized
below
.
1.2.2.1 Contribution of the ICT Sector to GD
PTab
le 1.1 shows the trend
in contribution of IC
T against G
DP
in Kenya in the p
ast 5years
1.2.2.2 Grow
th of the ICT SectorThe g
rowth of the IC
T sector has been on an upw
ard trend
for the fourth year running w
hile its contribution to K
enya’s GD
P rem
ained at 1.3 p
er cent. This grow
th is attrib
uted to increased
dig
itization of private b
usiness and G
overnment services, continuous increase in up
take of ICT services by K
enyans, increased roll out of
services to un-served and
under-served
areas. Fig
ure 1.6 shows the inform
ation and com
munication sector G
DP
and g
rowth.
Figure 1.6: Information and C
omm
unication GD
P and Grow
th
Table 1.1: Summ
ary of Economic Indicators
+ Revised
* Estim
ate ** Includes P
ostal and C
ourier Activities
Source: Econom
ic Survey 2019
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1.3 Future Outlook
The future outlook in the economy and
ICT sector are covered
under 1.3.1 and
1.3.2.
1.3.1 Economic O
utlookA
ccording
to the IMF
’s World
Econom
ic Outlook R
eport of July 20
19, the glob
al economic p
rospects are b
leak and g
rowth is forecasted
to decline to 3.2 p
er cent in 20
19, convalescing to 3.5 p
er cent in 2020
. The forecasted p
ickup in g
lobal g
rowth relies on sup
portive financial m
arket sentiments, stab
ilization in currently stressed
emerg
ing m
arket and d
eveloping
economies, p
rogress tow
ards resolving
trade-related
tensions and p
olicy diff
erences as well as ap
prop
riate m
acroeconomic p
olicies that are essential in stabilizing
activities and streng
thening the found
ation of recovery.
The emerg
ing m
arket and d
eveloping
economy are exp
ected to g
row at 4
.1 per cent in 20
19, increasing to 4
.7 per cent in 20
20. G
rowth in sub
-Saharan Africa
(SSA) is exp
ected at 3.4
per cent in 20
19 and 3.6 p
er cent in 2020
, as robust g
rowth in nonresource intensive countries p
artially offsets lackluster p
erformance of
the region’s larg
est economies. K
enya’s economic p
erformance in 20
19 is projected
to be less op
timistic (E
conomic Survey 20
19), owing
to the dep
ressed rainfall,
which m
ay negatively im
pact ag
riculture, electricity, water sup
ply as w
ell as industries that have strong
interlinkages w
ith these sectors.
Nevertheless, the tourism
sector, pub
lic consump
tion and p
rivate sector investments are p
rojected to b
oost grow
th. Kenya’s real G
DP
is projected
to grow
by 5.7 p
er cent in 2019, im
proving
to 5.9 per cent in 20
20, accord
ing to the W
orld B
ank Kenya E
conomic U
pd
ate of 2019. W
hile the med
ium-term
grow
th outlook is stab
le, recent threats of droug
ht and continued
subd
ued p
rivate sector investment could
drag
dow
n grow
th in the near-term.
Policies across all econom
ies should focus on fostering
equal op
portunities, investing
in dig
ital economy, g
reen energy and
transport infrastructure as w
ell as enhancing
peop
le’s skills. The priority across all countries should
be to streng
then resilience, enhance inclusion, reduce trad
e and technolog
y tensions as well as
add
ress constraints hamp
ering p
otential output g
rowth.
1.3.2 Outlook in the ICT Sector
ICT is exp
ected to continue p
laying a key role in shap
ing trend
s in the Glob
al economy. A
rtificial Intelligence (A
I), Cloud
Com
puting
, Mob
ile Fifth G
eneration (5G),
Cyb
er Security, Block C
hain and the Internet of Thing
s (IoT) are the prim
ary technologies exp
ected to p
lay a significant role in shap
ing trend
s in various sectors of the econom
y. Glob
al System M
obile A
ssociation (GSM
A), The M
obile E
conomy 20
19, prop
oses that AI w
ill be key to future b
usiness and d
igital transform
ation. It w
ill increasingly d
rive autonomous and
intelligent netw
orks as well as im
prove custom
er experience throug
h greater learning
of customer b
ehaviour. Op
erators across the g
lobe are therefore exp
ected to focus on A
I with various A
I-based
app
lications such as network op
eration/planning
, chatbots, d
igital assistants,
customer care and
advertising
as well as A
I as a service.
Bound
aries betw
een mob
ile and the w
ider d
igital ecosystem
are also expected
to continue to blur, as d
ata monetisation w
ill continue to pose a challeng
e to op
erators. Many op
erators are therefore expected
to move b
eyond their trad
itional ICT b
usinesses to explore new
opp
ortunities in a fast-changing
comp
etitive land
scape. O
ne such opp
ortunity is the content prod
uction and d
istribution. This area is und
ergoing
significant transform
ation driven by shifting
consumer
behaviour, new
players and
changing
content prod
uction and d
istribution m
odels. To b
enefit from the unp
recedented
level of content consump
tion, more
operators are exp
ected to enter this content sp
ace. In add
ition, existing content p
roviders are exp
ected to streng
then their existing content off
erings throug
h vertical integ
ration and p
artnerships w
ith Over the Top
(OTT) vid
eo service provid
ers.
As cap
tured by G
SMA
in its The Mob
ile Econom
y 2019 R
eport, there rem
ains a need for m
ost countries to mod
ernise regulatory fram
eworks. The w
orld has
changed
, and reg
ulation needs to ad
vance with the tim
es. Authorities should
therefore be looking
at two key areas for review
and reform
: firstly, regulatory
framew
orks should b
e reviewed
and up
dated
to prom
ote market d
ynamism
, comp
etition and consum
er welfare, w
hile discard
ing leg
acy rules that are no longer
relevant in the context of the dig
ital ecosystem. Second
ly, governm
ents should red
uce the sector-specific tax b
urden to encourag
e investment in new
technologies.
By setting
the right reg
ulatory context, governm
ents can create incentives for technological innovation and
investment that w
ill benefit the w
hole society.
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CHAPTE
R
IIM
AN
AG
EMEN
T OF ICT
RESOU
RCES
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The Authority m
anages IC
T resources to ensure their efficient and
optim
al utilization in the provision of IC
T services. These include: freq
uency spectrum
, dom
ain nam
es and num
bering
resources. The manag
ement of these resources ensures sustainab
le develop
ment of IC
Ts.
2.1 Radio Frequency Spectrum M
anagement
The Authority m
anages scarce rad
io frequency sp
ectrum to ensure its effi
cient utilization in the dep
loyment of IC
T services in the country. In this regard
, the A
uthority plans, allocates, assig
ns and issues freq
uency licenses for use in various services. These services are mob
ile cellular, terrestrial fixed and
fixed w
ireless access, satellite, F
requency M
odulation (F
M) rad
io, dig
ital terrestrial television (DTT), aeronautical rad
io, amateur rad
io and p
rivate radio netw
orks.
2.1.1 Mobile Cellular Services
During
the year, the numb
er of Second G
eneration (2G) and
Third G
eneration (3G) transceivers increased
marg
inally to 161,867 and 66,990
from 154
,250 and
53,557, resp
ectively. The Fourth Generation (4
G) transceivers m
ore than doub
led to 17,74
4 from
7,469 the p
revious year. This is attributed
to the issuance of sp
ectrum in the 70
0 M
Hz and
800
MH
z band
s to two licensees, w
hich enabled
the roll out of services on 4G
technologies.
The grow
th in dep
loyment of 2G
, 3G and
4G
transceivers in the country are shown in Tab
le 2.1.
Table 2.1: Mobile C
ellular Systems
Figure 2.1: Mobile C
ellular Systems Transceivers
Source: Econom
ic Survey 2019
2. Managem
ent of ICT Resources
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2.1.2 Fixed Wireless A
ccess Systems
Fixed
wireless access system
s are traditionally d
eployed
in the licensed 1.7G
Hz, 3.3G
Hz and
3.5GH
z frequency b
ands to p
rovide last m
ile connectivity to consumers.
During
the year, there was d
ecreased d
eploym
ent of fixed w
ireless systems attrib
uted to p
reference of offering
the same services in the unlicensed
and unp
rotected
5GH
z Industrial, Scientific and
Med
ical (ISM) freq
uency band
and fib
re. Table 2.2 show
s a summ
ary of the dep
loyment of fixed
wireless access transceivers. F
igure
2.2 shows fixed
wireless access transceivers d
eployed
.
2.1.3 Fixed Terrestrial LinksF
ixed terrestrial links are used
for traffic b
ackhaul by telecomm
unications networks. D
uring the year in review
, the Authority assig
ned 147 fixed
links bring
ing the
total numb
er to 7,620. The g
rowth in the num
ber of fixed
links is attributed
to the continued roll out of the 4
G technolog
ies by Mob
ile Netw
ork Op
erators (MN
Os)
requiring
more b
ackhauling. This includ
ed assig
nment of freq
uencies in the 80G
Hz b
and, w
hich has attracted g
rowing
interest due to their cap
acity and d
irectivity. Tab
le 2.3 shows the d
eploym
ent of fixed terrestrial links over the years. F
igure 2.3 show
s fixed terrestrial links d
eployed
.
Figure 2.2: Fixed Wireless A
ccess Systems
Table 2.3: Fixed Terrestrial Links
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Table 2.2: Fixed Wireless A
ccess Systems
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2.1.4 Satellite Systems
Satellite systems p
rovide w
idesp
read voice, d
ata and b
roadcast services. D
uring the year, the A
uthority assigned
frequencies for five (5) ad
ditional satellite earth
stations and five (5) p
rivate very small ap
erture terminals (V
SAT) stations.
2.1.5 Private Radio Netw
orksP
rivate radio netw
orks are used for com
munication w
ithin an entity and not op
en to the pub
lic. Com
pared
to the previous financial years, the d
ownw
ard trend
in the licensing
of private land
mob
ile services reversed d
uring the year in review
with the licensing
of 218 add
itional private land
mob
ile stations comp
rising 217 V
ery H
igh F
requency (V
HF
) and 1 H
igh F
requency (H
F).
This reversal may sig
nal the beg
inning of resurg
ence in the dep
loyment of p
rivate radio netw
orks. The licensing of b
ase stations and m
obile stations in the H
F and
V
HF
band
s over the years is shown in Tab
le 2.4.
Figure 2.3: Fixed Terrestrial Links
Source: Com
munications A
uthority of Kenya
Table 2.4: A
dditional Private Land Mobile Station
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2.1.6 Aeronautical Radio
Aeronautical rad
io networks p
rovide g
round-to-g
round and
air-to-ground
comm
unication services to aviation operators. D
uring the year, thhe A
uthority issued
579 aircraft station licenses comp
ared to 673 the p
revious year.
2.1.7 Am
ateur RadioA
mateur rad
io is the use of radio freq
uency spectrum
for purp
ose of non-comm
ercial exchange of m
essages, w
ireless experim
entation, private recreation and
em
ergency com
munication. In collab
oration with the A
mateur R
adio Society of K
enya (AR
SK), the A
uthority issues amateur rad
io licenses to individ
uals who are
duly certified
by the AR
SK or an eq
uivalent bod
y from another country. D
uring the year, the A
uthority issued 30
amateur rad
io operator licenses com
pared
to 19, the p
revious year.
2.1.8 Radio Alarm
Netw
orkA
radio alarm
network is a w
ireless system aim
ed at d
etecting unauthorized
access into a prem
ise. The network com
prises an alarm
decod
er located at the control
centre connected to w
ireless alarm term
inals. During
the year, there was a 70
per cent red
uction in the overall numb
er of VH
F alarm
units dep
loyed in rad
io alarm
networks com
pared
to the previous year. This d
ecrease was d
ue to decom
missioning
of radio alarm
networks, w
hich may b
e attributed
to adop
tion of alternative technolog
ies. Fig
ure 2.4 show
s the dep
loyment of alarm
units over the years.
2.1.9 Digital Terrestrial Television (DTT) Broadcasting Frequencies
DTT b
roadcasting
frequencies are used
by land-b
ased (terrestrial) television (TV
) stations to broad
cast content to televisions in dig
ital format. D
uring the
year in review, there w
as a slight d
ecline in the numb
er of dig
ital TV freq
uency assignm
ents. The decline w
as mainly attrib
uted to G
oTV’s d
ecomm
issioning of
transmitters. Tab
le 2.5 and F
igure 2.5 p
rovide the num
ber of freq
uencies assigned
to dig
ital TV sig
nal distrib
utors.
Figure 2.5: Digital TV
Frequencies
Source: Com
munications A
uthority of Kenya
Figure 2.4: V
HF A
larm U
nits
Table 2.5: Cum
ulative Digital TV
Frequency Assignm
ents
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Table 2.6: FM B
roadcasting Frequencies
Figure 2.6: Distribution FM
Sound Broadcasting by Type
Table 2.7: Maritim
e Mobile Service Identity A
ssigned
Fig
ure shows the d
istribution of F
M b
roadcasting
by type.
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
2.1.10 Frequency Modulation (FM
) Broadcasting FrequenciesA
radio station utilises freq
uency mod
ulation (FM
) broad
casting freq
uency to broad
cast content on radio. D
uring the year in review
, there was an 11 p
er cent increase in the num
ber of freq
uencies assigned
for FM
radio b
roadcasting
. The Authoritynassig
ned F
M b
roadcast freq
uencies to 104
FM
stations comp
ared to 93
the previous year. The num
ber of freq
uencies assigned
to comm
ercial and com
munity F
M stations in the last five years is sum
marised
in table 2.6.
Table 2.6: F
M B
roadcasting
Freq
uencies
2.1.11 Maritim
e Mobile Service Identity
A M
aritime M
obile Service Id
entity (MM
SI) is a series of nine dig
its, which are sent in d
igital form
over a radio freq
uency channel in order to uniq
uely identify ship
s and
related m
aritime infrastructure. In the course of the year, the A
uthority assigned
eight (8) M
MSI to ship
s and 23 M
MSI to b
eacons operated
by the Kenya P
orts A
uthority (KPA
). Table 2.7 p
rovides a sum
mary of the num
ber of M
MSI assig
ned in the last tw
o years.
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2.2 Managem
ent of Num
bering ResourcesN
umb
ering resources are num
erals that uniquely id
entify subscrib
ers in comm
unication networks. The A
uthority manag
es the National N
umb
ering P
lan that p
rovides for num
bering
resources assigned
to various telecomm
unication services.
2.2.1 Telecom N
umbering Resources
The Authority assig
ns numb
ering resources for config
uration of telecomm
unication systems to enab
le seamless interconnectivity am
ongst telecom
munication
service provid
ers and p
rovision of end-user services.
2.2.1.1 Assignm
ent of Telecom N
umbering Resources
The Authority assig
ned nine (9) m
obile N
ational Destination C
odes (N
DC
s) to facilitate mob
ile telephony services, as w
ell as one Central O
ffice C
ode (C
oC)
for fixed telep
hony services. Other resources assig
ned includ
ed four (4
) Short Cod
es and one (1) M
obile N
etwork C
ode for d
ata services. The Authority also
introduced
a new num
bering
level (010
0) w
ith a capacity of 10
0 b
illion numb
ers to cater for the envisioned M
achine-to-Machine services. M
achine-to-Machine
comm
unications refers to the direct com
munication b
etween d
evices. Ten million num
bers in this new
numb
ering level w
ere assigned
. Table 2.8 show
s numb
ering
resources assigned
during
the last five years.
2.2.1.2 National N
umbering Plan U
tilisationThe A
uthority continually monitors the utilisation of num
bering
resources provid
ed for in the N
ational Num
bering
Plan. Tab
le 2.9 provid
es a summ
ary of the num
bering
resources that have been assig
ned viz-a-viz the cap
acity.
Table 2.8: Num
bering Resources A
ssigned
Table 2.9: Status on Assignm
ent of Telecoms N
umbering R
esource as at 30th June 20
19 *One (1) M
obile N
ational Destination C
ode (N
DC
) is equivalent to 1,0
00
,00
0
mob
ile telephony sub
scriber num
bers.
**One (1) F
ixed telep
hony Central O
ffice C
ode (C
oC) is eq
uivalent to 1,00
0 fixed
telep
hony subscrib
er numb
ers.
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
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2.2.1.3 Mobile N
umber Portability
Num
ber p
ortability enab
les consumers to retain their m
obile telep
hone numb
ers if they opt to chang
e their mob
ile service provid
er. This enhances consumer
convenience and choice, effi
cient utilization of numb
ering resources as w
ell as prom
oting com
petition in the sector. In this reg
ard, the A
uthority continuously m
onitors the availability of m
obile num
ber p
ortability services to consum
ers. The porting
statistics for the last five years are shown in Tab
le 2.10.
2.2.2 Managem
ent of Dot KE D
omains
The Authority is m
andated
to prom
ote the use and ad
option of the d
ot KE
country code top
-level dom
ain (ccTLD). This is K
enya’s unique and
authentic identity
on the Internet. The use of dot K
E d
omains p
romotes cyb
er security by enhancing the level of d
ata and intellectual p
roperty p
rotection, while stim
ulating the
grow
th of eservices.
In consultation with the ind
ustry, the Authority d
eveloped
a Restricted
and R
eserved N
ame List (R
RN
L) for the Dot K
E country Top
-Level Dom
ain (ccTLD)
namesp
ace. This is aimed
at curbing
abusive d
omain nam
e registrations, w
hich may facilitate b
rand and
identity theft am
ong other form
s of cybercrim
e.
The Kenya N
etwork Inform
ation Centre (K
EN
IC) is the licensed
registry for the D
ot KE
dom
ain namesp
ace. In the course of the year, the Authority cond
ucted
annual regulatory com
pliance aud
it of KE
NIC
. The audit estab
lished that K
EN
IC w
as in comp
liance with the reg
ulatory requirem
ents. By the end
of the period
, K
EN
IC had
registered
a total of 87,807 d
omain nam
es. This was an increase of 17 p
er cent comp
ared to the p
revious period
. Table 2.11 show
s the steady increase
in registered
dom
ains over the years.
Table 2.10: M
onthly Porting Statistics
Table 2.11: Registered D
ot KE D
omains
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
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CHAPTE
R
IIIPRO
MO
TING
COM
PETITION
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The Authority m
anages com
petition to ensure eff
ective and effi
cient ICT m
arkets through licensing
of ICT service p
roviders, reg
ulating p
rovision of services and
enhancing com
petition. C
omp
etitive markets b
enefit societies and ensure that p
ersonal freedom
s to prod
uce, consume and
innovate are preserved
. A com
petitive
and rob
ust ICT sector contrib
utes to expansion of the national econom
y and has the p
otential to transform trad
itional economies into d
igital econom
ies.
3.1 LicensingThe K
enya Information and
Com
munications A
ct, 1998, mand
ates the Authority to license p
roviders of telecom
munications, rad
io comm
unications, broad
casting,
electronic transactions, postal and
courier services.
3.1.1 Telecoms Licensing
In its effort to increase the num
ber of p
layers in the telecomm
unications market, the A
uthority issued 329 new
telecom licences. A
t the same tim
e 125 licenses exp
ired, b
ringing
the total numb
er of licences to 2,987, as shown in Tab
le 3.1.
3.1.2 Type Approval
The Authority typ
e-app
roves telecomm
unication equip
ment to ensure conform
ity as well as com
patib
ility with national and
international standard
s. A total of
485 m
odels of eq
uipm
ent were typ
e-app
roved as com
pared
to 371 the previous year. This rep
resents a 30.7 p
er cent increase that is mainly attrib
uted to typ
e-ap
proved
broad
cast transmitters and
satellite terminals, w
hich grew
by 585 per cent and
33 per cent, resp
ectively.
The Authority also facilitated
imp
ortation of telecomm
unications equip
ment by various international org
anizations through the issuance of 24
clearance authorizations. The num
ber of typ
e-app
roval/acceptance ap
plications hand
led is show
n in Table 3.2.
Table 3.1: Telecomm
unications Licensees
Source: Com
munications A
uthority of Kenya
3. Promoting Com
petition
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Table 3.2: Type Approval/A
cceptance Applications H
andled
Table 3.3: Licensed Postal and Courier O
perators
Source: Com
munications A
uthority of Kenya
*Categ
ory is exemp
t from typ
e app
roval/accep
tance since the FY
2017/18
Source: Com
munications A
uthority of Kenya
*Categ
ory is exemp
t from typ
e app
roval/acceptance
since the FY
2017/18
3.1.3 Postal LicensingThe A
uthority issued 27 national and
four (4) international courier licenses. A
s a result, the numb
er of postal and
courier licensees increased by 6.0
percent from
216 the p
revious year to 229 as shown in Tab
le 3.3.
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Table 3.4: N
umber of B
roadcasting Licenses by Category
*This new license categ
ory comb
ines Internet protocol television b
roadcasting
, cable sub
scription
broad
casting, terrestrial sub
scription b
roadcasting
and satellite sub
scription b
roadcasting
.
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
3.1.4 Broadcasting LicensingThe A
uthority issued 71 b
roadcasting
licences comp
ared to 55 the p
revious year. The increase in the numb
er of licences issued is attrib
uted to increase in
the numb
er of comm
ercial free-to-air (FTA
) TV and
comm
unity FTA
radio. Tab
le 3.4 show
s the numb
er of licenses issued across various b
roadcasting
license categ
ories.
3.2 Trends In The Provision Of Ict Services
The Authority facilitates the d
evelopm
ent of a conducive environm
ent for the provision of IC
T services and m
onitors trends that inform
regulatory interventions.
3.2.1 Mobile Telephony Services
The total numb
er of mob
ile telephony sub
scribers rose to 52,168,0
66 from 4
5,568,924 record
ed in the p
revious year. This represented
a grow
th rate of 14.4
8 per
cent, which is slig
htly higher than 13.2 p
er cent exhibited
in the previous year. The ratio of p
repaid
to post-p
aid sub
scriptions rem
ained at ap
proxim
ately 34:1.
Mob
ile service provid
ers recorded
a general increase in their sub
scriber b
ases: Airtel N
etworks K
enya Limited
(31.7 per cent), Safaricom
PLC
(11.2 per cent), Telkom
K
enya Limited
(6.0 p
er cent) and M
obile P
ay Limited
(4.8 p
er cent). Conversely, the sub
scriber b
ase of Finserve Lim
ited d
ropp
ed by 3.91 p
er cent. Table 3.5 show
s a d
etailed d
istribution of sub
scribers p
er operator.
Table 3.5: Mobile Telephony Services as at the End of the Financial Year
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Telkom K
enya Limited
and A
irtel Netw
orks Kenya Lim
ited g
ained som
e market share as illustrated
in Fig
ure 3.1.
The total numb
er of minutes of local calls m
ade increased
by 24.4
per cent, w
hilst the total numb
er of short messag
e service (SMS) red
uced by 1.1 p
er cent from
the previous year, as show
n in Table 3.6.
The minutes of the on-net m
obile traffi
c continued to b
e higher than that of the off
-net mob
ile traffic. The p
ercentage share of on-net m
obile traffi
c vis-a-vis off-
net mob
ile traffic is show
n in Fig
ure 3.2.
Table 3.6: Mobile Traffi
c Indicators as at the End of the Financial Year
Source: Com
munications A
uthority of Kenya
Figure 3.1: Mobile N
etwork Services M
arket Share per Service Provider
Figure 3.2: Share of On-N
et vs Off
-Net M
inutes of Local Calls
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Table 3.7: Mobile Traffi
c Indicators as at the End of the Financial Year
Figure 3.3: Mobile Financial Services M
arket Share Per Operator
3.2.2 Mobile Financial Services
Accord
ing to the F
inAccess H
ousehold Survey R
eport 20
19 by the Central B
ank of Kenya (C
BK
), Kenya N
ational Bureau of Statistics (K
NB
S) and F
inancial Sector D
eepening
), formal financial inclusion g
rew from
15 per cent in 20
06 to 4
3.9 per cent in 20
19. The report attrib
uted the d
ecline in attractiveness of informal and
exclud
ed financial services to the introd
uction and continued
uptake of m
obile financial services. This up
take highlig
hts the imp
ortant role of mob
ile financial services in theg
rowth and
develop
ment of K
enya’s economy.
In the year under review
, wallet-to-w
allet interoperab
ility of person-to-p
erson (P2P
) mob
ile money transfer service w
as launched in K
enya. This service enables
customers of d
ifferent m
obile service p
roviders to receive m
oney directly into their m
obile w
allets. The innovative service is aimed
at prom
oting com
petition
among
the service provid
ers, as well as increasing
consumer choice. The g
rowth of m
obile m
oney subscrip
tions over the last five years is shown in Tab
le 3.7.
The total numb
er of active mob
ile financial services subscrib
ers grew
by 9.96 per cent as com
pared
to 5.71 per cent g
rowth in the p
revious financial year.
Source: Com
munications A
uthority of Kenya
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Similarly, the total num
ber of reg
istered m
obile m
oney transfer agents increased
by 24,4
10 to stand
at 290,4
32, while the total value of transactions rose by 17.13
per cent as show
n in Table 3.8.
3.2.3 Internet Services Internet sub
scriptions g
rew by 21.51 p
er cent. This grow
th was d
riven by the increase in mob
ile, satellite, fixed fib
re optic and
fixed cab
le mod
em sub
scriptions.
How
ever, there was a red
uction in subscrip
tions for terrestrial wireless and
dig
ital subscrib
er line, as shown in Tab
le 3.9.
Mob
ile data Internet continued
to dom
inate data Internet sub
scriptions. F
igure 3.4
shows the p
roportion of m
obile to fixed
data/Internet sub
scriptions.
Table 3.8: Mobile Financial Services as at the End of the Financial Year
Table 3.9: Internet Subscriptions as at the End of the Financial Year
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Figure 3.4: Proportion of M
obile to Fixed Internet Subscriptions
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3.2.4 Broadband ServicesThe total b
roadb
and service sub
scriptions g
rew by 8.0
8 percent to stand
at 22.2 million up
from 20
.5 million record
ed in the p
revious year. Mob
ile and fixed
b
roadb
and sub
scriptions g
rew by 8 p
er cent and 4
2 per cent, resp
ectively. In contrast, fixed w
ireless subscrip
tions declined
sharply by 4
4.6 p
er cent. The marg
inal g
rowth in total sub
scriptions can m
ainly be attrib
uted to exp
ansion of 4G
network thus increasing
mob
ile broad
band
Ssubscrip
tions. This is shown in Tab
le 3.10.
The total available b
andw
idth cap
acity stood at 4
,707.4
6 Gb
ps as com
pared
to 3,277.67 Gb
ps in the p
revious year. A d
etailed d
istribution of und
ersea and satellite
band
wid
th capacity is p
rovided
in Table 3.11.
The used international und
ersea band
wid
th grew
by 44
.2 per cent and
used international satellite b
andw
idth g
rew by 11.5 p
er cent, as shown in Tab
le 3.12
3.2.5 Fixed Netw
ork Voice Services F
ixed netw
ork voice service subscrip
tions declined
by 9.1 per cent to stand
at 62,708 as show
n in Table 3.13.
Table 3.10: N
umber of B
roadband Subscriptions as at the End of Financial Year
Table 3.11: Available International B
andwidth as at the End of Financial Year
Table 3.12: International Used B
andwidth as at the End of Financial Year
Table 3.13: Fixed Netw
ork Subscriptions
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
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The total traffic in m
inutes for calls from fixed
to mob
ile networks increased
marg
inally by 0.31 p
er cent to stand at 4
1,764,274
. How
ever, the total traffic in m
inutes from
mob
ile to fixed netw
ork declined
for the second year running
from 74
.5 million to 56.5 m
illion minutes, w
hich translates, to a 24.18 p
ercent. This is dep
icted
in Fig
ure 3.5.
International incoming
and outg
oing traffi
c in minutes increased
by 33.6 per cent and
33.4 p
er cent, respectively. This is show
n in Fig
ure 3.6.
3.2.6 Postal and Courier ServicesThe total num
ber of p
ostal outlets increased m
arginally by 1.8 p
er cent. This grow
th was solely b
ecause of the 3.0 p
er cent increase in the numb
er of private
operator outlets. P
ostal and courier netw
ork indicators are show
n in Table 3.14
Figure 3.5: Voice Traffic Pattern for Fixed N
etworks
Figure 3.6: International Incoming and O
utgoing Calls
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3.2.7 Broadcasting ServicesThe A
uthority regulates the b
roadcasting
sub-sector by d
eveloping
standard
s, regulating
content and m
onitoring com
pliance and
enforcement.
3.2.7.1 Free-to-Air Broadcasting Services
The numb
er of comm
ercial free-to-air (FTA
) television stations on air increased from
66 to 85, while the num
ber of P
ublic and
Com
munity F
TA TV
remained
at 3 and
1, respectively. The num
ber of on-air C
omm
unity FM
radio rose to 4
2 from 38 record
ed in the p
revious year while the num
ber of on-air C
omm
ercial and P
ublic
radio stations rem
ained at 131 and
13, respectively, as show
n in Fig
ure 3.7.
Table 3.14: Postal and C
ourier Netw
ork Indicators as at the end of Financial Year
Figure 3.7: Free-to-Air B
roadcasting
Source: Com
munications A
uthority of Kenya
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3.2.7.2 Subscription Broadcasting ServicesTerrestrial sub
scription b
roadcasting
services had the hig
hest subscrib
er base w
ith 4,0
80,324
from 3,80
9,244
subscrib
ers recorded
the previous year. This w
as follow
ed by Satellite at 1,20
9,799 from 995,0
12 and C
able at 171,939 from
153,462 sub
scribers. The p
reference for terrestrial subscrip
tion can be attrib
uted to the
afford
ability of b
ouquets on the p
latform. F
igure 3.8 show
s the numb
er of subscrip
tions to broad
casting services.
3.2.7.3 Broadcasting Signal Distribution Services
The DTT p
opulation coverag
e stood at 86.0
per cent. A
DN
L had the hig
hest DTT p
er cent pop
ulation coverage at 78.6 p
er cent, followed
by GO
TV at 75.36 p
er cent, w
ith SIGN
ET reg
istering 61.21 p
er cent, PAN
G at 55.85 p
er cent and B
AM
BA
at 39.72 per cent.
The broad
casting sig
nal distrib
utors (BSD
s) enhanced their infrastructure in ord
er to accomm
odate local insertions of content at red
uced cost and
hence increasing
consumer choice. F
igure 3.9 show
s the DTT p
opulation coverag
e.
Figure 3.8: Num
ber of Subscriptions to Broadcasting Services
Figure 3.9: Digital Terrestrial Population C
overage in Percentage
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3.3 Tariffs and Com
petitionThe A
uthority evaluates, app
roves and m
onitor tariffs, p
romotions and
special off
ers in the ICT sector to ensure conform
ance to the sector laws and
regulations.
This is done in ord
er to prom
ote comp
etition in the industry and
protect consum
ers.
3.3.1 Fixed And M
obile Netw
ork ServicesThe F
inance Act, 20
18 increased excise d
uty on telephone and
Internet data services to 15 p
er cent up from
10 p
er cent, which led
to an increase in the default
tariff rates for som
e mob
ile services. Conseq
uently, the prices of voice, SM
S, and d
ata went up
by 4 p
er cent, 10 p
er cent and 8 p
er cent, respectively. In contrast,
the average p
ay-as-you-go (PA
YG
) off-net rate w
ent dow
n by 4 p
er cent.
On the other hand
, the interconnection rates and reg
ional roaming
rates under the O
ne Netw
ork Area F
ramew
ork remained
the same, as they w
ere not affected
by chang
es in excise duty. Tab
le 3.15 shows chang
es in the average p
ay-as-you-go (PA
YG
) retail tariffs for fixed
and m
obile com
munications services.
Fig
ure 3.10 show
s convergence of p
re-paid
as well as p
ost-paid
on-net and off
-net voice tariffs
Table 3.15: Average Tariff
s as at the End of Financial Year in KES
Figure 3.10: Evolution of PAYG
Voice Tariffs
*Based
on Telkom K
enya Limited
household non-b
undle R
ate
Source: Com
munications A
uthority of Kenya
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During
the year in review, the A
uthority app
roved 28 new
retail tariffs. In ad
dition, the A
uthority app
roved 59 p
romotions and
special off
ers, which d
epicts a 6.3
per cent d
ecrease comp
ared to the p
revious year. The trend in p
romotions and
special off
ers is shown in F
igure 3.11.
Fig
ure 3.12 shows targ
eted p
roducts for p
romotions and
special off
ers by MN
Os
Figure 3.11: Promotions and Special O
ffers
Figure 3.12: MN
Os Products Prom
otions and Special Off
ers
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3.3.2 Broadcasting ServicesThe A
uthority continued to im
plem
ent Determ
ination No. 2 of 20
16 Terrestrial Broad
cast Signal D
istribution on P
ricing and
Access F
ramew
ork, which p
rescribes
price cap
s on broad
cast signal d
istribution. D
uring the year, the A
uthority imp
lemented
Phase 3 of the b
roadcast sig
nal distrib
ution tariffs g
lide-p
ath as shown in
Table 3.16.
Table 3.16: Broadcast Signal D
istribution Charges in K
ES per Site per Mbit/s
Source: Com
munications A
uthority of Kenya
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CHAPTE
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IVENSU
RING
COM
PLIAN
CE
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The Authority insp
ects, monitors and
undertakes enforcem
ent activities to ensure comp
liance with the law
. This is aimed
at verifying com
pliance w
ith license cond
itions, quality of service threshold
s, assessing conform
ance with stand
ards, and
ensuring the integ
rity of pub
lic comm
unications infrastructure.
4.1 InspectionsThe A
uthority conducted
countrywid
e inspections of licensees’ op
erations and facilities to d
etermine the level of com
pliance w
ith licence conditions. The A
uthority also insp
ected IC
T installations to determ
ine comp
liance with installation stand
ards.
4.1.1 Telecomm
unications Inspections and Certification of InstallationsThe A
uthority carried out a total of 752 insp
ections during
the year. This represents an increase of 4
49 p
er cent comp
ared to the p
revious year. The sharp increase
was as a result of increased
inspections on sub
scriber id
entity mod
ule (SIM) card
registrations across the country. The overall com
pliance b
ased on the insp
ections w
as 44
.7 per cent com
pared
to 29.2 per cent the p
revious year. A sum
mary of the insp
ected and
comp
liant licensees is shown in Tab
le 4.1.
4.1.2 Radio-Comm
unications InspectionsThe A
uthority conducted
country-wid
e on-site inspections at 1,324
radio stations com
prising
698 fixed p
oint-to-point links, 119 land
mob
ile, 386 FM
broad
cast transm
itter sites and 121 d
igital TV
broad
cast transmitter sites as sum
marized
in Table 4
.2.
Table 4.1: Sum
mary of Telecom
munication Licensee Inspections and C
ertification
Table 4.2: N
umber of O
n-site Inspections Conducted for the Last Five Years
* New
category
Source: Com
munications A
uthority of Kenya
* Does not includ
e the numb
er of fixed links
Source: Com
munications A
uthority of Kenya
4. Ensuring Compliance
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4.1.2.1 Land Mobile Radio Stations
Land m
obile services com
prise of rad
io-comm
unication in the HF, V
HF
and U
ltra Hig
h Freq
uency (UH
F) b
ands. The A
uthority undertook insp
ections that focussed
on: prog
ramm
ed freq
uencies; status of equip
ment typ
e-app
roval; network location and
configuration as w
ell as adherence to license cond
itions. A total of 119 land
m
obile netw
orks were insp
ected out of w
hich 69 were com
pliant translating
to a comp
liance level of 58.0 p
er cent comp
ared w
ith 60.6 p
er cent in the previous
year. The noncomp
liance was in the follow
ing areas: unauthorized
expansion of existing
networks; p
rogram
ming
unauthorized freq
uencies and estab
lishment of
networks w
ithout authorisation/licence.
4.1.2.2 FM Radio and D
igital TV Broadcast Stations
The Authority und
ertook inspections of F
M rad
io and d
igital TV
transmitter stations. These insp
ections focussed on: transm
it frequency; status of eq
uipm
ent typ
eapp
roval; installation of band
pass filter for F
M stations; transm
it pow
er; installation site; antenna gain; and
adherence to license cond
itions. The comp
liance level for F
M rad
io was 85.23 p
er cent while that of d
igital TV
broad
casting w
as 52.89 per cent. The non-com
pliance w
as mainly ob
served in the follow
ing areas:
type-ap
proval, transm
it pow
er and b
and p
ass filter. Table 4
.3 shows the com
pliance levels.
4.1.2.3 Fixed Radio-Comm
unication InstallationsThe A
uthority inspected
1,850 fixed
links across the country. The main areas of focus w
ere: transmit and
receive frequencies; b
andw
idth; installation site and
ad
herence to licence conditions. A
total of 1,533 links were com
pliant, w
hich represented
a comp
liance level of 82.7 per cent com
pared
to 86.8 per cent realized
the p
revious year.
4.1.3 Postal and Courier Licensees InspectionsD
uring the year, the A
uthority inspected
581 postal and
courier outlets comp
ared to 34
1 the previous year. This rep
resents an increase of 70.4
per cent. The
inspections covered
272 Postal C
orporation of K
enya (PC
K) outlets and
309 courier outlets. These insp
ections established
that 190 outlets w
ere comp
liant ind
icating a com
pliance level of 32.70
per cent.
4.2 Monitoring
Freq
uency monitoring
is a spectrum
manag
ement function, w
hich helps in p
lanning and
use of frequencies to avoid
incomp
atible
usage and
identify sources of harm
ful interference. 4.2.1 Radio M
onitoring and Frequency Interference Resolution In an eff
ort to ensure that users of assigned
spectrum
do not exp
erience interruption, the A
uthority monitors freq
uencies utilisation before assig
nment and
resolves freq
uency interference cases.
4.2.1.1 Frequency Monitoring
The Authority hand
led 21 cases for rad
io monitoring
in HF, V
HF, U
HF
and sup
er high freq
uency (SHF
) band
s. The Authority also cond
ucted F
M and
TV b
roadcast
monitoring
during
the course of on-site inspection. Tab
le 4.4
shows a sum
mary of the freq
uency monitoring
activities.
Table 4.3: C
ompliance Levels
* Data on num
ber of sites not used
in comp
utation of comp
liance levels.
Source: Com
munications A
uthority of Kenya
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4.2.1.2 Radio Frequency Interference ResolutionA
total of 78 interference cases were hand
led d
uring the year, of w
hich 64 w
ere resolved as sum
marized
in the table b
elow. The resolution rate w
as 84.62 p
er cent as com
pared
to 84.4
per cent in the p
revious year. Table 4
.5 shows the num
ber of freq
uency interference cases handled
.
4.2.2 Broadcast Content Monitoring
The Authority d
evelops and
monitors com
pliance to b
roadcasting
content standard
s. Toward
s this end, the A
uthority monitored
FTA
television and rad
io licensees com
pliance to the follow
ing stand
ards: local content q
uota requirem
ent of 40
per cent; P
wD
s sign lang
uage insert; ad
vertisements req
uirements (<10
minutes
in every 30 m
inutes of prog
ramm
ing, 4
0 p
er cent local); children’s p
rogram
s of at least 5 hours per w
eek; and ap
prop
riate content during
the watershed
period
.
4.2.2.1 Compliance w
ith Local Content Quota
The Authority m
onitored the level of b
roadcasters’ com
pliance to the follow
ing req
uirements: local content q
uota requirem
ent of 40
per cent; P
wD
s sign lang
uage
insert; advertisem
ents requirem
ents (10 m
inutes in every 30 m
inutes of prog
ramm
ing, 4
0 p
er cent local); children’s p
rogram
s of at least 5 hours per w
eek; and
app
ropriate content d
uring the w
atershed p
eriod. The A
uthority monitored
broad
cast content of 51 TV stations and
12 FM
radio stations. The b
roadcast m
onitoring
finding
s are summ
arized in Tab
le 4.6.
Table 4.5: N
umber of Frequency Interference C
ases
Table 4.6: Sum
mary of B
roadcast Content M
onitoring
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Table 4.4
: Num
ber of Frequency Monitoring A
ctivities
Source: Com
munications A
uthority of Kenya
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4.2.2.2 Performance of the Various G
enresM
usic continued to have the hig
hest weekly averag
e followed
by religious p
rogram
ming
and talk show
s as shown in Tab
le 4.7.
Fig
ure 4.1 show
s the annual comp
liance levels of the broad
cast content by genre.
4.2.2.3 Children’s Programm
ingThe A
uthority also monitored
licensed stations’ com
pliance levels for the child
ren’s prog
ramm
ing content. The stations’ com
pliance levels to the child
ren’s p
rogram
ming
are shown in the Tab
le 4.8.
Table 4.7: B
roadcast Local Content by G
enre in Minutes
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
Figure 4.1: B
roadcast Content by G
enre
Table 4.8: C
hildren’s Programs R
equirement of at Least 5 H
ours per Week (30
0 M
inutes)
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4.3 Enforcement
The Authority, in its enforcem
ent activities saw the p
rosecution of 38 cases. In these cases, 25 were conclud
ed and
13 are still ongoing
Fig
ure 4.3 show
s the off
ences that were com
mitted
.
The Authority also m
onitored com
pliance levels for the child
ren’s prog
ramm
ing. The annual com
pliance levels are show
n in Fig
ure 4.2
4.4 Evaluation of Environmental Im
pact Assessm
ent ReportsThe A
uthority collaborates w
ith the National E
nvironmental M
anagem
ent Authority (N
EM
A) to assess the environm
ental imp
act of ICT installations. This aim
s at ensuring
that various ICT installations in the country are com
pliant w
ith environmental stand
ards. In com
pliance w
ith Section 60 of the E
nvironment M
anagem
ent and
Coord
ination Act (E
MC
A) of 1999 (as am
ended
), NE
MA
routinely subm
its to the Authority E
nvironmental Im
pact A
ssessment (E
IA) R
eports on p
roposed
ICT
installations for review. The A
uthority assessed 70
EIA
Rep
orts during
the year in review.
Figure 4.3: Enforcem
ent Activities for FY
2018/19
Figure 4.2: C
hildren’s Programm
es Requirem
ent of at Least 5 hours per Week
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CHAPTE
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VMA
NA
GEM
ENT
OF CYBER SECU
RITY
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The glob
al cyber threat land
scape is continuously evolving
with cyb
er attackers mod
ifying and
perfecting
cyber threat d
istribution schem
es, resulting in a rap
id
evolution in cyber threat attack m
ethodolog
ies such as phishing
emails, sm
ishing, vishing
, pretexting
, baiting
as well as q
uid-p
ro-quo. C
yber crim
e outfits glob
ally are alig
ning to existing
criminal structures to op
timize cyb
er crime for financial g
ain. These evolving cyb
er threat actors include A
dvanced
Persistent Threat (A
PT)
group
s, which are the w
orld’s m
ost potent hacking
threat, since they have resources that afford
them p
rotections that other standard
cyber crim
inal group
s do not
have These group
s have gained
notoriety for targeting
corporates, com
prom
ising m
ajor glob
al carriers as well as using
their networks to track and
spy on their targ
ets, with a focus on exfiltration of trad
e secrets and intellig
ence targeting
both p
rivate businesses and
governm
ent agencies.
The Authority is m
andated
to develop
a framew
ork for facilitating the investig
ation and p
rosecution of cybercrim
e offenses. In furtherance of this m
andate, the
Authority has in p
lace the National K
enya Com
puter Incid
ent Resp
onse Team - C
oordination C
entre (National K
E-C
IRT/C
C), w
hich is a multi-ag
ency framew
ork that is K
enya’s National p
oint of contact on cyber security m
atters. This multi-ag
ency app
roach is aimed
at exped
iting the resp
onse to and resolution of cyb
er threats w
here the roles, strengths and
synergies of the various g
overnment ag
encies lead to enhanced
efficiencies and
effectiveness.
5.1 National Cyber Security M
anagement
The Authority und
ertook various activities aimed
at enhancing national cyb
er readiness and
resilience. This entailed am
ong others, enhancem
ent of the capab
ilities of the N
ational KE
-CIR
T/CC
, broad
ening m
ulti-stakeholder eng
agem
ent, technical training for the local sector C
omp
uter Incident R
esponse Team
(CIR
Ts) as well
as prom
oting a national culture of cyb
er security through various p
ublic aw
areness and eng
agem
ent activities. These initiatives are geared
at enhancing K
enya’s p
roactive response to cyb
er threats.
The National K
E-C
IRT/C
C d
etects, prevents and
respond
s to cyber threats targ
eted at the country on a 24
/7 basis. The centre also coord
inates response to cyb
er security m
atters. This is done in collab
oration with relevant actors locally and
internationally. Fig
ure 5.1 shows an overview
of the functions of the National K
E-
CIR
T/CC
.
Figure 5.1: Functions of the National K
E-CIR
T/CC
5. Managem
ent of Cyber Security
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5.2 Cyber Threats Detected
The National K
E-C
IRT/C
C p
roactively detected
and resp
onded
to various cyber threats targ
eting K
enya. The centre also disp
atched cyb
er threat advisories to the
pub
lic and to N
ational KE
-CIR
T/CC
Cyb
er Security Com
mittee (N
KC
C) constituents. The N
ational KE
CIR
T/CC
detected
51,902,260
cyber threat events com
pared
to 23,815,972 the p
revious year.
This increase may b
e attributed
to the enhancement of the K
E-C
IRT/C
C d
etection capab
ilities, enhanced collab
oration with external p
artners, as well as increased
g
lobal cyb
er attacks. These attacks targeted
individ
uals, corporates and
governm
ent systems includ
ing critical infrastructure and
essential services.
These attacks varied from
denial-of-service (D
oS), which includ
ed b
otnet and b
ruteforce attacks that led to d
enial of comp
uter services and illeg
al access to com
puter system
s; online imp
ersonation via social med
ia accounts and d
omain nam
es; web
site attacks that involve web
site defacem
ent; malw
are and ransom
-w
are; social engineering
attacks that involved sp
am and
phishing
attacks; online abuse that includ
ed online fraud
, hate speech, incitem
ent to violence and fake
news; and
system m
isconfiguration. Tab
le 5.1 shows a sum
mary of the rep
ort on National C
yber Threats.
5.3 Cyber Threats Advisories
To enhance the feedb
ack process, the A
uthority issued 4
8,664 cyb
er threat advisory rep
orts of cyber incid
ents to the affected
critical infrastructure service p
roviders. F
urther, the Authority held
monthly cyb
er security forums for the local cyb
er security comm
unity to discuss top
ical issues on cyber security as w
ell as q
uarterly NK
CC
meeting
s. A sum
mary of cyb
er threats validated
and escalated
is shown in Tab
le 5.2.
Table 5.1: Cyber Threats D
etected
Table 5.2: Cyber Threats Validated and Escalated
Source: Com
munications A
uthority of Kenya
Source: Com
munications A
uthority of Kenya
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5.4 Cyber Security CollaborationsIn view
of the cross bord
er nature of cyber crim
e, international collaborations are an essential com
ponent of cyb
er security manag
ement. The A
uthority continued
to enhance its trust network at the local and
international level through collab
orations and inform
ation sharing w
ith various glob
al cyber security p
artners.
These partners includ
ed ITU
, Forum for Incid
ent Resp
onse and Security Team
s (FIR
ST), Internet Corp
oration for Assig
ned N
ames and
Num
bers (IC
AN
N), Faceb
ook, Tw
itter, Goog
le, GoD
add
y, G7 24
/7 Cyb
ercrime N
etwork and
48 other N
ational CIR
Ts.
The Authority also estab
lished new
collaborations w
ith the Portug
uese National C
ER
T (CE
RT.P
T).
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CHAPTE
R
VI
EMPO
WERIN
G A
ND
PROTECTIN
GTH
E CON
SUM
ER
89
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The Authority is m
andated
to emp
ower consum
ers of ICT services and
protect their interests. This is achieved
by safeguard
ing the rig
hts and resp
onsibilities of
ICT consum
ers and service p
roviders as stip
ulated in the K
ICA
and reg
ulations thereunder (http
s://ca.go.ke/ab
out-us/statutes-regulations/sector-leg
islation/). In ensuring
that consumers are p
rotected, the A
uthority requires all licensed
ICT service p
roviders to estab
lish app
ropriate custom
er care and com
plaints hand
ling
mechanism
s as well as p
ublish the charg
es, terms and
conditions of services. The A
uthority undertook various reg
ulatory interventions to understand
and
emp
ower consum
ers. This was d
one through cond
ucting consum
er surveys, education and
outreach.
6.1 Consumer Education A
nd Information
The Authority executed
various consumer ed
ucation initiatives to emp
ower consum
ers in order to m
ake informed
decisions in the IC
T market. The ed
ucation activities w
ere executed und
er the following
prog
ramm
es:
6.1.1 Child Online Protection
The Authority recog
nizes that children and
youth are early adop
ters of technology and
are increasingly b
eing exp
osed to risks and
vulnerabilities in the cyb
er-sp
ace. In view of this, the A
uthority carried out various activities g
eared tow
ards C
hild O
nline Protection. These includ
e: endorsem
ent of GSM
A’s “W
e Care
Cam
paig
n”, a mob
ile phone service ind
ustry initiative that saw m
obile op
erators comm
it toward
s develop
ing m
echanisms to p
rotect children online; p
articipation
in 2018 K
enya Music Festivals and
2019 K
enya Dram
a and F
ilm Festivals; created
Child
Online P
rotection (CO
P) aw
areness in 6 schools in Nairob
i, Busia and
B
ungom
a Counties; as w
ell as exhibiting
in the 14th K
enya Prim
ary School Head
Teachers Associations A
nnual Deleg
ates Conference.
Arising
from the find
ings of the consum
er trends and
behavior survey carried
in the previous year, the A
uthority conducted
cyber safety aw
areness in an effort
to enhance the national cyber-hyg
iene levels. The Authority p
articipated
on various activities under the them
e “Child
Online P
rotection and Safe U
se of Internet”.
As p
art of the celebrations to com
mem
orate the Safer Internet Day, the A
uthority hosted a live b
reakfast show on C
itizen TV, which focused
on child online
protection and
cyber security in K
enya. The Authority also p
articipated
in the launch of the Kenya Scouts C
urriculum on online safety, created
awareness on online
safety in collaboration w
ith Dig
ital TV b
roadcaster E
limu TV
at the Makini School.
6.1.2 Consumer Education Initiatives
The Authority held
a County IC
T Consum
er Forum d
ubb
ed ‘K
ikao Kikuu’ in K
isumu C
ounty, which w
as preced
ed by a road
show and
an ICT-centric E
xhibition. The
forum p
rovided
a platform
to engag
e ICT service p
roviders, consum
ers of ICT services and
the County G
overnment. The eng
agem
ent also enabled
the Authority
to obtain feed
back from
consumers reg
arding
various issues on ICT services w
ithin the County. In ad
dition, the A
uthority conducted
awareness d
uring the Lam
u C
ultural Festival, KA
SS Marathon, C
hemusus D
am M
arathon, Law Society of K
enya (LSK) C
onference, information System
s Aud
it and C
ontrol Association (ISA
CA
) C
onference, Friend
s Church Yearly M
eeting.
In its effort to em
pow
er consumers, the A
uthority availed consum
er advisory inform
ation targeting
users of mob
ile, Internet, postal and
courier services. In ad
dition, the A
uthority availed inform
ation on e-waste and
guid
elines for the Child
Online P
rotection. This information w
as dissem
inated d
uring all consum
er ed
ucation outreach activities, corporate events, P
CK
outlets, Hud
uma C
entres and N
ational Pub
lic Libraries. A
total of 1,00
7,859 consumer ed
ucation materials
were d
istributed
during
the year as comp
ared to 621,771 the p
revious year.
6.2 Understanding the Consum
erThe A
uthority undertakes reg
ular consumer trend
s and b
ehavior surveys, customer satisfaction surveys, to g
ather insight into the b
ehavior of ICT services
consumers in K
enya. These surveys seek to continuously assess consumer b
ehavior in the market w
ith the aim of ob
taining an ob
jective view of the consum
er trend
s, behavior and
satisfaction with reg
ards to the use of IC
T services. The finding
s from the surveys inform
consumer p
rotection and em
pow
erment m
echanisms
as well as initiatives.
6. Empow
ering and Protecting the Consumer
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6.2.1 Customer Satisfaction
The Authority cond
ucts customer satisfaction surveys of its internal and
external customers to d
etermine their levels of satisfaction.This inform
s intervention m
echanisms to im
prove service d
elivery. The Authority carried
out a Custom
er Satisfaction Survey of its internal and external custom
ers during
the year in review.
The overall satisfaction index slig
htly dip
ped
to 73.2 per cent from
76.4 p
er cent recorded
in the previous year. The d
ecline was attrib
uted to low
er licensees’ and
supp
liers’ satisfaction ratings.
6.2.2 Consumer Protection
The Authority is m
andated
to protect consum
ers of ICT services in K
enya. This is achieved throug
h enforcement of reg
ulatory oblig
ations on consumer p
rotection and
handling
consumer com
plaints. In an eff
ort to strengthen its com
plaints m
anagem
ent, the Authority collab
orated w
ith relevant Governm
ent Ministries,
Counties, D
epartm
ents and A
gencies (M
CD
As) and
private stakehold
ers to put in p
lace a framew
ork for handling
comp
laints on abuse of child
ren in the cyber
space.
6.2.3 Consumer Com
plaints and EnquiriesThe A
uthority handled
comp
laints and enq
uiries on various ICT issues.
6.2.3.1 Complaints
The Authority received
362 comp
laints through the com
plaint-hand
ling p
latform, chukuahatua@
ca.go.ke, out of w
hich 143 w
ere resolved. The m
ain categories of
comp
laints received and
their prop
ortionate shares are as shown in F
igure 6.1:
6.2.3.2 EnquiriesIt is a req
uirement of the C
onstitution and A
ccess to Information A
ct, 2016 that p
ublic institutions up
hold the rig
ht of access to information by m
emb
ers of the p
ublic. The A
uthority is required
to, among
others, avail and d
isclose information up
on request and
as app
ropriate. The A
uthority processed
984 enq
uiries. The p
roportionate rep
resentation of the enquiries is show
n in the Table 6.1.
Figure 6.1: Num
ber of Consum
er Com
plaints
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Participants follow proceedings at the annual IC
T Week hosted by the A
uthority. The event is a platform for regular engagem
ent with the IC
T industry
A participant m
akes a comm
ent during the ICT W
eek hosted by the Authority
CA
Director G
eneral Mr.Francis W
angusi (second left) during a live TV show
on the Safer Internet Day 20
19.The discussion w
as beamed live from
the CA
Centre
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To a large extent, the enq
uiries were g
eneral in nature, touching on inform
ation regard
ing the A
uthority’s various mand
ates on the ICT ind
ustry. Some w
ere in reg
ard to internship
s and b
usiness opp
ortunities. These are shown in F
igure 6.2.
Table 6.1: Num
ber of Enquiries Processed in the FY 20
18/19
Figure 6.2: Proportionate Representation of Enquiries R
eceived
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Staff during Sundow
ner Trivia event which is used to create aw
areness on service delivery at the Authority
Offi
cials from the telecom
munications industry sign a pledge to safeguard chidren against harm
ful content during the launch of W
e Care cam
paign in Kenya. The initiative is supported by the A
uthority
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CHAPTE
R
VII
UN
IVERSA
L SERVICE
INITIATIV
ES
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In ensuring that all K
enyans have access to ICT services, the A
uthority imp
lemented
Universal Service F
und (U
SF) sup
ported
initiatives. The Authority also
enforced universal service ob
ligations (U
SO) em
bed
ded
in the licence conditions of service p
roviders.
7.1 Projects Supported By Universal Service Fund
The Authority im
plem
ented various initiatives to ad
dress IC
T access gap
s identified
in the Universal Service F
und (U
SF) Im
plem
entationStrateg
y for the FY
2017/18 to F
Y 20
22/23. The initiatives were ed
ucation broad
band
and voice infrastructure p
rojects. The Ed
ucation Broad
band
Project involves
provision of Internet connectivity to all p
ublic second
ary schools in the country while the V
oice Infrastructure Project targ
ets to provid
e mob
ile telecomm
unication services in 34
8 sub-locations, w
hich are un-served and
underserved
.
7.1.1 Education Broadband ProjectThe E
ducation B
roadb
and P
roject comm
enced in the F
Y 20
17/18 and has so far p
rovided
Internet connectivity to 565 pub
lic secondary schools w
ith a speed
of 5M
b/s d
own link and
1 Mb
/s uplink.
7.1.2 The Voice Infrastructure ProjectThe im
plem
entation of the Voice Infrastructure P
roject comm
enced in the F
Y 20
17/18. During
the year in review, the A
uthority rolled out m
obile telep
hony services in ad
ditional 36 sub
-locations bring
ing the total num
ber of served
sublocations to 66. The sites in w
hich the sub-locations are connected
under the U
SF initiatives
are shown in F
igure 7.1.
7.2 Universal Service O
bligationsThe M
NO
s are required
to roll out services in under-served
and un-served
sublocations und
er universal service oblig
ation (USO
) incorporate in their licence
conditions. Tow
ards this end
, a total of 246 sites covering
345 sub
-locations were connected
.
7. Universal Service initiatives
Figure 7.1: USF C
onnected Sites
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CHAPTE
R
VIII
CAPA
CITY BUILD
ING
, IMPRO
VEM
ENT O
F SYSTEM
S AN
D W
ORKIN
G EN
VIRO
NM
ENT
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The Authority und
ertook various activities toward
s strengthening
its institutional capacity and
ensuring effi
cient service delivery These activities includ
ed: b
uilding
cap
acity of its workforce to enhance com
petence; im
provem
ent of the working
environment; m
odernization of its system
s and im
provem
ent of internal processes.
The Authority’s hum
an capital strateg
y is aimed
at attracting and
retaining a hig
hly skilled and
comp
etent workforce. Tow
ards this end
, one (1) staff w
as recruited
at manag
ement level to b
etter meet the reg
ulatory dem
ands of the g
rowing
ICT sector. In ad
dition, six (6) em
ployees exited
the service of the Authority thereby
bring
ing the staff
comp
lement to 271. The fem
ale to male ratio stood
at 44
:56, which is ab
ove the constitutional threshold of one-third
gend
er affirm
ative action in ensuring
gend
er equality and
equity.
8.1 Capacity BuildingW
ith the rapid
change and
comp
lexity in the ICT sector, there is an ever-increasing
dem
and to keep
abreast w
ith innovations and technolog
y. In this regard
, the A
uthority carried out cap
acity build
ing for staff
and p
rovided
opp
ortunities for linking the ind
ustry with acad
emia.
8.1.1 Organizational Learning
To enhance staff skills and
comp
etencies, the Authority im
plem
ented training
and d
evelopm
ent initiatives that focused on creating
a learning org
anization as well
as ensuring effi
cient and eff
ective perform
ance. The Authority b
uilt staff cap
acity based
on identified
needs and
carried out training
prog
ramm
es as summ
arized
in Table 7.1.
8.1.2 Building Capacity in the IndustryThe A
uthority conducted
capacity b
uilding
prog
ramm
es in the ICT sector in p
artnership w
ith the Com
monw
ealth Telecomm
unications Org
anization (CTO
), U
nited States Telecom
munications Training
Institute (USTTI) and
Glob
al System for M
obile C
omm
unications Association (G
SMA
). The prog
ramm
es were b
ased on
identified
industry need
s and technolog
ical trends in the m
arket. These were: B
ig D
ata; Artificial Intellig
ence; Consum
er and C
hild O
n-line Protection; Sp
ectrum
Manag
ement and
Reg
ulation; and Internet of Thing
s (IoT).
Further, the A
uthority organized
cyber security training
s on cyber forensic investig
ation, vulnerability assessm
ent auditing
, system ad
ministration and
firewall
adm
inistration.
8.1.3 Knowledge Transfer betw
een Industry and Academ
iaIn line w
ith creating a know
ledg
e-based
economy as envisag
ed in the econom
ic pillar of V
ision 2030
, the Authority p
rovided
attachment for seven (7) stud
ents und
er the Presid
ential Dig
ital Talent Prog
ramm
e (PD
TP). The A
uthority also enabled
knowled
ge transfer b
etween ind
ustry and acad
emia by p
roviding
internship
opp
ortunities to 136 youths from tertiary institutions.
Table 8.1: Organizational learning in Various A
reas
8. Capacity Building, Improvem
ent of Systems and W
orking Environment
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Further, the A
uthority particip
ated in the curriculum
review for the School of C
omp
uting and
Informatics at the M
asinde M
uliro University of Science and
Technology
(MM
UST). The A
uthority hosted M
t Kenya U
niversity, Jomo K
enyatta University of A
griculture and
Technology (JK
UA
T), Ag
a Khan H
igh School, M
MU
ST and the
National D
efense Colleg
e on study visits.
8.1.4 Research, Innovation and Knowledge M
anagement
The Authority has p
ut in place a know
ledg
e manag
ement fram
ework to id
entify, capture, store and
share its knowled
ge assets to m
eet the dem
ands arising
from
the dynam
ic transformations in the IC
T sector. In line with this fram
ework the A
uthority leveraged
on local and reg
ional symp
osiums, to p
romote local IC
T innovation. The A
uthority also develop
ed an Innovation, R
esearch and D
evelopm
ent (IR&
D) P
olicy to guid
e research and innovation activities. Sub
sequently, the
Authority com
menced
a collaborative research initiative w
ith Strathmore U
niversity on TV w
hitespace technolog
y.
8.2 Working Environm
entIn an eff
ort to create a conducive w
orking environm
ent for its emp
loyees, the Authority und
ertook various initiatives. These initiatives were aim
ed at enhancing
p
roductivity, effi
ciency, effectiveness and
imp
roved service d
elivery. Some of the initiatives includ
ed ensuring
: occupational health and
safety; emp
loyee wellness
and youth em
pow
erment; environm
ental sustainability; g
ender and
disab
ility mainstream
ing; H
IV/AID
S awareness as w
ell as prevention of alcohol and
drug
abuse.
The Authority und
ertook a survey with an ind
epend
ent consultant on the work environm
ent satisfaction percep
tion yielding
a satisfaction index of 83.
8.2.1 Occupational H
ealth and SafetyThe A
uthority’s prem
ises were aud
ited and
certified to b
e comp
liant with the H
ealth, Safety and E
nvironment Stand
ards, F
ire and O
ther Places of W
ork Rules
(200
7). In comp
liance with safety stand
ards, the A
uthority conducted
an emerg
ency and fire d
rill to assess staff p
repared
ness.
8.2.2 Employee W
ellnessIn ensuring
wellness and
work-life b
alance, the Authority’s em
ployees p
articipated
in the 39th Kenya C
omm
unications Sports O
rganizations (K
EC
OSO
) Gam
es in K
akameg
a. The gam
es provid
ed an op
portunity for staff
to show case their talent in sp
orting activities. In an eff
ort to enhance synergy at the w
orkplace, the
Authority und
ertook team b
uilding
for its emp
loyees. Further, the A
uthority provid
ed training
for its emp
loyees on personal financial m
anagem
ent and p
re-retirem
ent planning
.
8.2.3 Environmental Sustainability
The Authority d
eveloped
an Environm
ental Sustainability P
olicy to prom
ote sustainable use of IC
Ts, in line with the b
est environmental p
ractices. The Authority
prioritizes environm
ental sustainability p
ractices such as enhanced energ
y efficiency and
adop
tion of renewab
le energy. In this reg
ard, the A
uthority installed
solar pow
er in its remote m
onitoring stations and
planted
600
trees at Kahaw
a Monitoring
Station. The Authority w
as also audited
and certified
by NE
MA
to be
comp
liant with relevant environm
ental manag
ement stand
ards.
In recognition of the neg
ative health and environm
ental imp
act of electronic waste (e-w
aste), the Authority in collab
oration with N
EM
A facilitated
sensitization training
on e-waste m
anagem
ent and environm
ental sustainability. In ad
dition, the A
uthority collaborated
with other stakehold
ers in the develop
ment of the national
e-Waste M
anagem
ent Strategy. F
urther, the Authority p
articipated
in the 2019 W
orld E
nvironment D
ay, where it sensitized
the pub
lic on e-waste m
anagem
ent.
8.2.4 Gender and D
isability Mainstream
ingThe A
uthority imp
lemented
various initiatives on gend
er and d
isability m
ainstreaming
in line with the C
onstitution. This was achieved
through: enhanced
accessib
ility to the corporate w
ebsite by P
ersons with D
isabilities (P
wD
s), revised b
roadcast licence cond
itions to incorporate sig
n languag
e, training of staff
on g
ender and
disab
ility mainstream
ing. F
urther, front office staff
were trained
on sign lang
uage.
8.2.5 Campaign A
gainst HIV/A
IDS
The Authority sensitized
staff on b
ehaviour change initiatives, p
ost exposure p
rophylaxis (P
EP
) as well as stig
ma associated
with H
IV/AID
s. The Authority also
conducted
a wellness d
ay for staff and
family m
emb
ers that involved w
ellness checks such as blood
pressure, b
lood sug
ar, voluntary counselling and
HIV
testing
(VC
T), bod
y mass ind
ex (BM
I) as well as d
ental checks. The same w
as also carried out for the p
ublic d
uring the IC
T County Forum
dub
bed
‘Kikao-kikuu’ in K
isumu.
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8.2.6 Prevention of Alcohol and D
rug and Substance Abuse
The Authority im
plem
ented its W
orkplace P
olicy on Alcohol and
Drug
Ab
use. The Authority’s staff
were also sensitized
and trained
on drug
s and sub
stance abuse p
revention, with an em
phasis on early id
entification of alcoholism, treatm
ent and p
revention. The Authority also trained
its counsellors and encourag
ed staff
to utilizethe counselling, p
sychiatric and rehab
ilitative centres alread
y integrated
into the med
ical scheme as p
art of its initiative toward
s Em
ployee A
ssistance Prog
ramm
e (EA
P).
8.3 National Cohesion and Values
The Authority celeb
rated its q
uarterly National P
atriotic Day w
ith emp
hasis on emb
racing d
iversity, integrity and
high ethical values.
Staff w
ere trained on the im
portance of up
holding
ethics and integ
rity at the workp
lace.
As p
art of awareness creation, the A
uthority upload
ed the C
ode of C
onduct and
whistle-b
lowers p
olicy statement on its w
ebsite to encourag
e the pub
lic to report
any incidence of ethical m
isconduct.
The Authority com
plied
with the P
ublic O
fficers E
thics Act (20
03), by ensuring
staff ob
tained and
comp
leted their W
ealth Declaration Form
s. The forms w
ere sub
mitted
to the Ministry of P
ublic Service w
ithin the statutory timelines. N
ew staff
signed
an Integrity P
act/Oath in com
pliance w
ith the Authority’s C
ode of
Cond
uct. The Cod
e of Cond
uct incorporates A
rticle 232 of the Constitution on the V
alues and P
rinciples of P
ublic Service and
Chap
ter Six (6) of the Constitution
on Leadership
and Integ
rity.
As a sector m
emb
er of the Kenya Lead
ership and
Integrity Forum
(KLIF
), the Authority im
plem
ented the K
enya Integrity P
lan (KIP
).The m
ain objective of K
IP is to: com
bat and
reduce the incid
ence of corruption and
unethical conduct; im
prove institutional g
overnance and b
usiness ethics for transp
arency and accountab
ility; enhance efficiency and
effectiveness in service d
elivery in the private and
pub
lic sectors; create and m
aintain partnership
s in the fig
ht against corrup
tion and unethical b
ehaviour; as well as streng
then the policy and
legal fram
eworks.
8.4 Autom
ation of the Internal ProcessThe A
uthority imp
lemented
the first phase of its p
lan to re-engineer and
automate its p
rocesses by adop
ting an E
nterprise R
esourceP
lanning (E
RP
) system. The ad
option of E
RP
shall lead to an increase in effi
ciency of operations, enhance service d
elivery to both internal and
external stakeholders,
increase ability to m
onitor perform
ance and enhanced
planning
and d
ecision making
capab
ility through access to m
ore accurate and tim
ely information. E
RP
system
provid
es an avenue for integration w
ith other vital system at the A
uthority and its service p
roviders. In line w
ith its IT roadm
ap, the A
uthority re-engineered
its licensing
manag
ement p
rocesses.
CA
staff at a team
buliding exerciseStaff
pose for a photo during a Gender M
ainstreaming W
orkshop
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CHAPTE
R
IXCO
RPORATE CO
MM
UN
ICATION
AN
D IN
TERNATIO
NA
L LIAISO
N
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The Authority carries out a num
ber of activities in relation to its corp
orate comm
unications banner to estab
lish and m
aintain good
relations with its stakehold
ers. The A
uthority is also the Kenya’s d
esignated
representative to reg
ional and international IC
T intergovernm
ental bod
ies. In fulfilment of this ob
ligation, the
Authority eng
aged
various stakeholders on ind
ustry matters, p
articipated
in various local, regional and
international fora.
9.1 Corporate Comm
unicationThe A
uthority develop
ed a com
munications strateg
y to guid
e its comm
unication. The strategy w
ill go a long
way in im
proving
the Authority’s relationship
with
stakeholders, creating
pub
lic awareness and
enhancing b
uy-in for its operational and
regulatory initiatives. In ad
dition, the A
uthority carried out the follow
ing
activities: pub
licity, stakeholder eng
agem
ent, pub
lic consultation, corporate social resp
onsibility, exhib
itions and p
romotional activities as w
ell as percep
tion survey.
9.1.1 Public Activities
In a bid
to scale up p
ublic aw
areness on its mand
ate, the Authority in collab
oration with K
enya Broad
casting C
orporation (K
BC
) sponsored
the airing of the A
frican C
up of N
ations (AFC
ON
) gam
es. During
the gam
es, TV and
radio com
mercials on the A
uthority’s mand
ate were aired
to enhance its brand
awareness in lig
ht of hig
h viewership
in the country.
9.1.2 Stakeholder Engagement
The Authority continued
to engag
e stakeholders in the IC
T sector as well as local com
munities on various activities. In ord
er to ensure that the Authority
consistently maintains g
ood relationship
s with stakehold
ers, a stakeholder eng
agem
ent framew
ork was d
eveloped
as a guid
ing b
lueprint.
9.1.3 Public ConsultationsThe A
uthority undertook p
ublic consultations on various issues includ
ing: D
ata Protection B
ill 2018; R
evised B
roadcasting
Prog
ramm
ing C
ode; K
enya’s readiness
for convergence in B
roadcasting
and Telecom
munications; N
ational Ad
dressing
System (N
AS); and
the National B
roadb
and Strateg
y (NB
S).
9.1.4 Public Engagement A
ctivitiesThe A
uthority undertook p
ublic eng
agem
ent activities on various issues including
: Monthly C
yber Security F
ireside C
hats, Kikao K
ikuu, Lamu C
ultural Festival, the IC
T Week, C
oast Innovation Week and
Kuza B
roadcasting
Aw
ards.
9.1.5 Corporate Social ResponsibilityThe A
uthority through its C
orporate Social R
esponsib
ility (CSR
) is comm
itted to im
proving
the quality of life of local com
munitie and
the society at large. Som
e of the activities carried
out under the C
SR b
anner include: p
rovision of comp
uters and Internet connectivity to five schools; M
ater Heart R
un; Talanta Football C
lub;
Sports P
ersonality of the Year Aw
ards (SO
YA) and
Greening
Kenya C
amp
aign.
9.1.6 Exhibitions and Promotional A
ctivitiesIn a b
id to further enhance its visib
ility, the Authority sp
onsored and
particip
ated in the follow
ing activities: ITU
Telecom W
orld in D
urban, South A
frica; 1st Telecom
s, Electronics and
Mob
iles (TEM
s) ICT E
xpo; Law
Society of Kenya (LSK
) Annual C
onference; Med
ia Conference by the M
edia C
ouncil of Kenya (M
CK
); and
the Kalasha International A
ward
s. The Authority also sp
onsored the K
ASS M
arathon and various g
olf tournaments.
9.1.7 Perception SurveyThe A
uthority undertook a p
erception survey to g
auge p
ublic aw
areness, attitudes and
opinion on the C
A b
rand. A
ccording
to the survey, pub
lic awareness on the
Authority rose from
80 p
er cent the previous year to 86 p
er cent.
9. Corporate Comm
unication and International Liaison
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ICT C
abinet Secretary Mr.Joe M
ucheru speaks at a Kenyan luncheon as part of cam
paign for a seat at the International Telecomm
unication union (ITU
) Council.K
enya was re-elected alongside 12 other A
frican countries
Delegation from
the Uganda C
omm
unications Com
mission on a tour of B
ase Transmitter Station in K
ajiado County
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Winners of the K
uza Aw
ards 2019 pose w
ith their trophies
9.2 International LiaisonThe A
uthority represents the country in reg
ional and international IC
T bod
ies to which K
enya is affiliated
. In this regard
, the Authority m
eets related financial
oblig
ations and p
articipates in forum
s organized
by the respective org
anizations. The Authority’s p
articipation in these m
eetings is inform
ed by the need
to ensure K
enya’s interest are articulated and
safeguard
ed.
9.2.1 Mem
bership to Regional and International Organizations
The Authority sub
scribes to various reg
ional and international IC
T organisations. These org
anizations include: ITU
, African Telecom
munications U
nion (ATU
), U
niversal Postal U
nion (UP
U), P
an African P
ostal Union (PA
PU
), Com
monw
ealth Telecomm
unications Org
anisation (CTO
), East A
frican Com
munications
Org
anization (EA
CO
), African A
dvanced
Level Telecomm
unications Institute (AF
RA
LTI), Association of R
egulators of Inform
ation and C
omm
unication of Eastern
and Southern A
frica (AR
ICE
A) and
Smart A
frica Alliance.
The Authority coord
inated cam
paig
ns that led to the election of a K
enyan, Mr. John O
mo (form
er Director of Leg
al Services at the Authority) for the p
osition of Secretary G
eneral of the ATU
for four (4) years tenure. In the sam
e bread
th, the Authority w
as successful in rallying the sup
port of ITU
Mem
ber States for K
enya’s b
id for re-election into the ITU
Council for the p
eriod 20
19-23. Kenya has served
in the ITU C
ouncil since 1982.
9.2.2 Regional and International Engagements
The Authority p
articipated
in a numb
er of technical and p
olicy meeting
s and conferences org
anized by various international and
regional IC
T organizations.
These included
; Smart A
frica, Internet Governance Forum
(IGF
), ICA
NN
, ITU, A
TU, U
PU
, PAP
U, C
TO, E
AC
O and
AF
RA
LTI. The Authority hosted
a numb
er of key international m
eetings and
conferences in Kenya, in close collab
oration with the international affi
liated org
anizations. The Authority also hosted
the 5th ATU
C
onference of Plenip
otentiaries in Nairob
i Kenya, ITU
Centres of E
xcellence (CoE
) Steering C
omm
ittee Meeting
for African N
etworks as w
ell as the USTTI Training
Sem
inar.
9.2.3 Benchmarking
The Authority hosted
several deleg
ations from other A
frican regulatory ag
encies on benchm
arking m
issions. Some of the d
elegations hosted
by the Authority
included
: Telecomm
unications Reg
ulatory Board
of Cam
eroon, Ug
anda C
omm
unications Com
mission (U
CC
), Malaw
i Com
munications R
egulatory A
uthority (M
AC
RA
), National Telecom
munications C
omm
unications of Sierra Leone and Z
amb
ia Information C
omm
unications Technology A
uthority (ZIC
TA).
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Kenya’s M
atano Ndaro (centre), C
hairman of the Taskforce on the R
eform of the System
applied to Contributions by U
PU M
ember C
ountries
CA
Chairm
an Mr.N
gene Gituku (left) during the unveilling of a three classroom
block and three teachers’ quarters at the M
eguarra Primary School in K
ajiado County as part of C
A’s C
orporate Social Responsibility
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Kenya’s M
r.John Om
o receives instruments of offi
ce upon his election as the Secretary G
eneral of the African
Telecomm
unications Union (A
TU)
The three classroom block constructed by the A
uthority at Meguarra Prim
ary School in Kajiado C
ounty
Kenya’s delagation to the U
niversal Postal Union’s Extraordinary C
ongress held in Addis A
baba
The Authority annually sponsors and participates in the M
ater Heart R
un
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CHAPTE
R
XPRO
CUREM
ENT A
ND
FINA
NCIA
LSTATEM
ENTS
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10.1 Procurement and D
isposalThe A
uthority adhered
to the princip
les of transparency, accountab
ility, openness and
value for money in its p
rocurement p
rocesses, as provid
ed for in the
Constitution of K
enya 2010
, the Pub
lic Procurem
ent and A
sset Disp
osal Act, 20
15 and attend
ant Reg
ulations as well as the A
uthority’s Procurem
ent Policy M
anual.
The Authority’s p
rocurement b
udg
et was K
ES 1,675,623,823.78, out of w
hich KE
S 1,453,538,568.70
was utilized
. In comp
liance with the A
ccess to Governm
ent P
rocurement O
pp
ortunities (AG
PO
), the Authority aw
arded
tenders w
orth KE
S 219,023,397.50
against a targ
et of KE
S 238,262,100
.00
. In an effort to sup
port the
sustainability of local ind
ustry, the Authority aw
arded
tenders w
orth KE
S 1,00
4,564
,795.01 to local entities ag
ainst a target of K
ES 664
,995,44
0.0
0. Tab
le 9.1 shows
a summ
ary of the top ten tend
ers award
ed d
uring the year in review
.
Table 10.1: Top – Ten Tenders A
warded in FY
2018/19 by Value
10. Procurement and Financial Statem
ents
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10.2 Financial Statements
The Authority’s financial statem
ents for the period
ended
30th June 20
18 were sub
mitted
to the Offi
ce of the Aud
itor General w
ithin the statutory timeline of 30
th Sep
temb
er 2018.
The summ
ary of the Authority’s A
udited
financial Statements for the p
eriod end
ed 30
th June 2018 is p
rovided
below
.
10.2.1 Statement of the D
irectors’ Responsibilities
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Source: Extracts from
the Aud
ited A
ccounts FY
2017/18
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10.2.2 Revenue
Source: Extracts from
the Aud
ited A
ccounts FY
2017/18
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10.2.2.1 Sources of RevenueIn the F
Y 20
17/18, the Authority earned
revenue of KE
S 8.922 billion. This com
prised
of annual frequency license fees of K
ES 6.223 b
illion, annual operating
license fees of K
ES 1.392 b
illion, finance income of K
ES 1.298 b
illion and other incom
e of KE
S 9.091 m
illion. Included
in other income is revenue arising
from typ
e app
roval, reg
istration fees, sale of tender d
ocuments, staff
rent and p
enalties levied d
uring the year. F
igure 10
.1 shows a d
istribution of the A
uthority’s revenue.
10.2.3 ExpenditureD
uring the F
Y 20
17/18, the total operating
costs were K
ES 4
.40
6 billion com
pared
to KE
S 3.667 billion in the F
Y 20
16/17, representing
an increase of 20 p
er cent. This increase is m
ainly attributed
to bad
and d
oubtful d
ebts p
rovision cost of KE
S 702.837 m
illion that was m
ade d
uring the year.
10.2.4 SurplusThe surp
lus as at 30th June 20
18 was K
ES 4
.520 b
illion. During
the year, the Authority m
ade a p
rovision of KE
S 4.0
68 billion, b
eing 90
per cent of the A
uthority’s surp
lus, to be rem
itted to The N
ational Treasury. The resultant net surplus w
as KE
S 452.0
17 million.
Figure 10.1: Sources of R
evenue
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10.2.5 Statement of Financial Position as at 30th June 2018Source: E
xtracts from the A
udited
Accounts F
Y 20
17/18
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10.2.6 Audited Financial Statem
ents
10.2.6.1 Assets
The assets of the Authority w
ere KE
S 18.156 billion w
hich comp
rised of cash and
cash equivalent of K
ES 12.90
3 billion; receivab
les from non-exchang
e transactions of K
ES 877.0
14 m
illion; receivables from
exchange transactions of K
ES 561.321 m
illion; prop
erty, plant and
equip
ment of K
ES 2.980
billion; and
intangib
le assets of K
ES 834
.40
8 million.
10.2.6.2 LiabilitiesA
s at 30th June 20
18, the Authority’s total liab
ilities stood at K
ES 4
.991 billion. This com
prised
of a provision for surp
lus remittance to the N
ational Treasury of KE
S 4
.068 b
illion; trade and
other payab
les of KE
S 897.145 m
illion; and p
ayments received
in advance of K
ES 26.479 m
illion.
PA
GE
122
AN
NU
AL REPO
RT20
18 - 2019
Notes
123P
AG
E
AN
NU
AL REPO
RT20
18 - 2019
Reporting Cybercrime in Kenya
Cyb
ercrime incid
ents can be rep
orted to the N
ational KE
-CIR
T/CC
through any of the follow
ing m
eans:
The Authority’s w
ebsite, http
://ww
w.ca.g
o.ke under the “Inform
ation Security” section.
The Authority’s N
ational KE
-CIR
T/CC
web
site, http://w
ww
.ke-cirt.go.ke und
er the “Rep
ort an Incident” section;
Send an em
ail to: incidents@
ke-cirt.go.ke;
Via a letter ad
dressed
to:The D
irector-General
Com
munications A
uthority of Kenya (C
A)
CA
Centre, W
aiyaki Way
P.O. B
ox 144
48 N
AIR
OB
I 00
800
Visit the A
uthority’s National K
E-C
IRT/C
C located
at the CA
Centre along
Waiyaki W
ay
Head
Offi
ceC
A C
entreP.O
Box: 14
44
8, Nairob
i 00
800
Mob
ile: + 254 70
3 04
2 00
0, +254
730 172 0
00
Em
ail: [email protected]
o.ke
Western R
egional O
ffice
1st Floor, KV
DA
Plaza, Eld
oretP.O
Box: 234
6, Eld
oret 3010
0M
obile: +254
703 0
42 10
5E
mail: w
o.ke
Coast R
egional O
ffice
3rd Floor, N
SSF Build
ing, M
omb
asaP.O
Box: 80
41, Mom
basa 80
100
Mob
ile: +254 70
3 04
2 152E
mail: cro@
ca.go.ke
Nyanza R
egional O
ffice
2nd Floor Lake B
asin Mall
P.O B
ox: 2016, K
isumu 4
010
0M
obile: +254
703 0
42 130
Em
ail: [email protected]
o.ke
Central R
egional O
ffice
Ground
Floor, Ad
vocates PlazaP.O
Box: 134
, Nyeri 10
100
Mob
ile: +254 70
3 04
2 181E
mail: cero@
ca.go.ke