The Ministry of ICT has appealed a decision to transition the national broadcaster, Kenya Broadcasting Corporation (KBC) and the Postal Corporation of Kenya to purely commercial entities, arguing that their sole mandate was to offer essential social services to Kenyans.
Cabinet Secretary William Kabogo told the National Assembly’s ICT committee that he will present a Cabinet memorandum to rescind a decision to transition KBC and Postal Corporation of Kenya (PCK) from being service-oriented entities to purely commercial ventures.
He said the two entities have been earmarked by the National Treasury for transformation from State corporations that are fully controlled by the government to Government-Owned Entities (GEOs) where private players will run them with minimal government ownership.
“Although the Cabinet approved the change of some entities from being State-owned parastatals to GOE’s, the KBC and PCK were not in the list. We are surprised they have been included in the entities to be converted to GOEs,” Mr Kabogo said.
“I have since written a Cabinet memo asking the government to remove these two entities from the list because they are purely service-oriented. I know that they have commercial aspects but they offer more services to Kenyans.”
The National Treasury last week asked Kenyans to give submissions on the intended conversion of key parastatals to GOEs where the private sector is expected to control their boards.
The Government Owned Enterprises Act, which gave birth to partial privatisation of State shareholding in the cash rich Kenya Pipeline Company (KPC) and Safaricom PLC, will see about 30 State-owned enterprises transformed to largely private ownership.
The Government Owned Enterprises Act, 2026 seeks to turn into companies’ corporations that include the cash rich Kenya Airports Authority (KAA) the Kenya Ports Authority (KPA), the Kenya Railways Corporation (KRC), and the Agricultural Development Corporation (ADC).
Loss-making corporations that are set to be transformed into companies are the KBC, PCK, Kenya Literature Bureau, National Cereals and Produce Board, National Housing Corporation, National Mining Corporation, Kenya Meat Commission, Kenya Post Office Savings Bank, among others.
While appearing before the committee to defend the ministry’s budget alongside principal secretaries Stephen Isabokhe (Broadcasting) and John Tonui (ICT), Mr Kabogo said the transfer of KBC and PCK to the Treasury will severely impact public good as the two entities largely offer social rather than commercial services.
During the meeting, the committee heard that Konza Technopolis Development Authority requires Sh1.2 billion for recurrent budget but has been allocated Sh838 million resulting in a shortfall of Sh362 million in the year 2026/27.
The committee chaired by Dagoreti MP John Kiarie heard that the ambitious Digital Superhighway Programme may fail if adequate finances are not allocated to complete the last phases of the myriad ongoing projects.
PS Isaboke appealed to the committee to consider an additional Sh9.3 billion to bridge existing budget deficits that threaten the rollout of key digital infrastructure projects across the country.
He said the Ministry ’s programmes were central to Kenya’s economic transformation and competitiveness in the digital era.
“We are building the backbone of Kenya’s digital future, and these investments are no longer optional. If adequately funded, the Digital Superhighway will unlock opportunities for millions of young people, businesses and innovators across the country,” Mr Isaboke said.
He added the Ministry remained committed to ensuring every shilling allocated delivers value to wananchi through improved connectivity, innovation and digital services.
PS Tanui told MPs that despite the Ministry making “realistic and strategic requests”, critical projects remained underfunded.
“We have put in our best requests and wishes. Just like we are aiming at the sun and landing on the moon, let’s put in our best and ensure we support these key departments that will help support government communication,” said Engineer Tanui.
Mr Tonui singled out funding for Artificial Intelligence software, modernisation of the Kenya News Agency, and establishment of the National Cybersecurity Centre as crucial priorities for the Ministry.
Mr Kiarie said the committee will carefully evaluate the ministry ’s proposals against the country’s broader development agenda.
“Our responsibility as a committee is to ensure strategic sectors like ICT are adequately supported financially because digital transformation is now at the heart of governance, education, trade and innovation,” Mr Kiarie said.
“The engagements we are holding with MDAs (Ministries, Departments and Agencies of Government) are critical in helping Parliament make informed decisions that balance fiscal realities with the country’s development aspirations.”
