Communications Authority on the spot after audit uncovers asset management failures

The Communications Authority of Kenya has been put on spot over questionable accounting practices, with the Auditor General exposing irregular land valuations and missing ownership documents that could expose billions of public funds to loss.

According to the Auditor General, the Authority overstated the value of its Nairobi headquarters land, failed to adjust title deeds and maintained unclear ownership records for several regional properties.

The findings emerged during a probe by the Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Navakholo MP Emmanuel Wangwe, following a review of the Authority’s audit reports from 2020 to 2024.

Communications Authority of Kenya CEO David Mugonyi faced sharp questioning from Members of Parliament over the audit findings.

At the centre of the controversy is the reported Sh15.96 billion valuation for the Authority’s headquarters land in Nairobi, a figure the Auditor General says is grossly inflated.

“This figure is significantly overstated and raises serious doubts about the credibility of the Sh15.96 billion valuation,” Agnes Kamau from the Office of the Auditor General said.

According to the audit report, 0.8042 hectares of the land were wrongfully acquired by the government, but the Authority continued to declare the land as measuring 5.592 hectares, rather than the actual 4.7878 hectares. Despite this discrepancy, no adjustments were made to the land’s valuation or title deed.

In Garissa County, a property valued at Sh68.57 million, complete with a building, lacked any ownership documents, leaving its legal status uncertain. Similarly, in Trans Nzoia County, auditors found that land valued at Sh68.57 million is still burdened by a Sh462.5 million charge registered in 2010, despite ownership changing hands a year later.

The charge arose from a loan issued by Kenya Commercial Bank to the Agricultural Development Corporation.

“This is not just an oversight; it’s a fundamental failure in asset management. Public assets cannot be left in a state of documentation limbo,” Wangwe said.

The Authority also failed to collect Sh3.19 billion owed by Telkom Kenya Limited (TKL) from 2019 to 2022, despite TKL previously indicating it had cleared its balances.

Although the National Treasury had issued letters expressing its intention to support TKL financially, no funds were disbursed or structured. As a result, the Authority was forced to write off Sh287 million as bad debt.

“The scale of these audit concerns is alarming. We need answers and action,” Wangwe told the MPs.

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