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: info@ca.go.ke

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

Nyanza R

egional Offi

ce2nd Floor Lake B

asin Mall

P.O B

ox: 2016, K

isumu 4

010

0M

obile: +254 70

3 04

2 130Em

ail: nro@ca.go.ke

Central R

egional Offi

ceG

round Floor, Advocates Plaza

P.O B

ox: 134, N

yeri 1010

0M

obile: +254 70

3 04

2 181Em

ail: cero@ca.go.ke

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

3 PA

GE

AN

NU

AL REPO

RT20

18 - 2019

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

NU

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

NU

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

NU

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

GE

AN

NU

AL REPO

RT20

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

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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

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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,

print

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.

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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

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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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MO

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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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IVENSU

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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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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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EMPO

WERIN

G A

ND

PROTECTIN

GTH

E CON

SUM

ER

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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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UN

IVERSA

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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

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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

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RPORATE CO

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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

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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: info@ca.g

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

ro@ca.g

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: nro@ca.g

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