The financial integrity of the Communications Authority of Kenya (CAK) is under intense parliamentary scrutiny after it was revealed that Telkom Kenya Limited failed to receive funds allocated by the National Treasury.
The funds were meant to cover spectrum fees totaling billions of shillings.
The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA), chaired by Hon. Emanuel Wangwe, has launched a full-scale probe into the matter.
The committee is demanding answers from CAK Director General David Mugonyi, following alarming findings from the Auditor-General’s reports on CAK’s financial statements for the fiscal years 2019/2020 through 2023/2024.
At the heart of the probe is a growing storm over Kshs. 3.6 billion in bad and doubtful debts.
The Authority’s Statement of Financial Position as of 30 June 2021 shows receivables valued at Kshs. 300.5 million.
However, these are deeply compromised by vast provisions for debts unlikely to be recovered—chief among them a staggering Kshs. 2.1 billion allegedly owed by Telkom Kenya.
According to official documentation, the National Treasury had committed through notice (Ref: INT/ZZ/331/92) to settle Telkom’s spectrum fees for the financial years 2019/2020 and 2020/2021.
Yet, by the time of the Auditor-General’s review in November 2021, not a single cent had been remitted.
Even more perplexing is a letter from Telkom Kenya (Ref: TKL/RA/CA(LIC), dated 21 December 2020), in which the company denies owing any money to the Authority.
This flatly contradicts CAK’s own records and raises red flags about the authenticity and accuracy of the Authority’s financial reporting.
With no documented reconciliation between the conflicting claims and no adequate explanation from CAK management, the legitimacy of the reported receivables is now under serious question.
Lawmakers have expressed grave concerns over the lack of financial transparency and are demanding urgent corrective measures.
“We are dealing with public funds and institutions that should be the gold standard of accountability. This kind of financial fog cannot be allowed to persist,” Wangwe said during the heated committee session.As the investigation intensifies, all eyes are now on CAK’s leadership to clarify the discrepancies and restore confidence in the Authority’s financial governance. Meanwhile, the unresolved debt crisis continues to cast a long shadow over the sector’s regulatory credibility.
