The Computer Society of Kenya

Since 1986


Monday October 22, 2018 

The Information Communication and Technology Authority is technically insolvent and cannot meet its financial obligations, Auditor-General Edward Ouko says.

The authority recorded a Sh2.41 billion loss in the 2016/17 financial year.

The auditor, in a report tabled in the National Assembly last week, said the agency's liabilities of Sh1.6 billion exceed its Sh386 million assets.


“Its financial statements are prepared on a going concern basis. The assumption is that the authority will continue to receive financial support from the government, bankers, creditors and donors,” the report said.

Mr Ouko refused to express an opinion on the authority's financial statements, returning a disclaimer.

While the statement for the year ended June 2017 reflects grants income of Sh21.9 billion, Mr Ouko's office established that it differs with the ministry’s figure of Sh22 billion.

The auditor said Sh276 million allocated to the Digital Literacy Programme and Sh13 million for its operations cannot be confirmed as the nature and supporting documents were not presented for review.


An examination of ICTA’s statements showed that Sh1.8 billion was withdrawn from the authority's Citibank account on July 18, 2016.

On December 22 of the same year, Sh1.5 billion was deposited to the same account.

According to the report, no explanation was given for the nature and source of these funds. No evidence of any authority to use the money was availed for review.


On April 28, 2017, Sh85.9 million was transferred from the project account to another within the same bank without any explanation.

“The management has not said why the amount was transferred at a time the project was about to come to an end,” Mr Ouko added.

The report says the project management opened and operated an account at Citibank, Upper Hill branch without authority from the National Treasury.


The management would later transfer Sh6.9 million to the project account on April 24, 2017 when the programme.

The auditor said it is not possible to confirm the accuracy, validity and completeness of the project transactions for the six months.

The authority's financial statements reflect Sh19.4 billion described as special grants expenses. However, ICTA paid Sh18.3 billion for digital literacy plan devices, out of which Sh15.1 billion was supported by nine letters of credit and whose vouchers were presented for review.

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