Auditor General uncovers massive irregularities at Communications Authority

Communication Authority of Kenya DG David Mugonyi before the he Public Investments Committee on Social Services on July 17, 2025 [Elvis Ogina, Standard]

The auditor general has revealed significant inconsistencies and documentation failures at the Communication Authority of Kenya (CA), which could jeopardise billions of shillings in public assets.

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.

According to the 2020 to 2024 audit reports, inflated land valuations, unclear ownership records, and questionable financial reporting raise serious concerns about the CA's accounting practices.

At the centre of the issues is a reported land asset value of Sh15.96 billion for the CA's headquarters in Nairobi.

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

The auditors found that part of the land, which is 0.8042 hectares, was wrongfully acquired by the government.

The actual adjusted size should be 4.7878 hectares, rather than the claimed 5.592 hectares. Despite this discrepancy, no adjustments were made to the valuation, and the title deed remained uncorrected.

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, a Sh68.57 million land asset is encumbered by a Sh462.5 million charge registered in 2010, despite the land changing hands a year earlier.

This charge, arising from a loan to the Agricultural Development Corporation from Kenya Commercial Bank, continues to impact the CA's balance sheet.

"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 remarked.

Additionally, while Telkom Kenya Limited (TKL) previously stated that there were no outstanding balances, audit reports indicate that TKL owes CA Sh3.19 billion in unpaid obligations from 2019 to 2022.

Although Treasury letters expressed intentions to support TKL, no funds were disbursed or structured, forcing the CA to write off Sh287 million as bad debt.

CAK CEO David Mugonyi faced significant scrutiny regarding the growing discrepancies, as MPs demanded urgent accountability.

"The scale of these audit concerns is alarming. We need answers and action," Wangwe emphasised.