Following a public query raised on the KICTANet platform, the Communications Authority (CA) issued a detailed response on the allocation and implementation of the Universal Service Fund (USF), a KES 17.674 billion portfolio aimed at bridging Kenya’s digital divide.
What’s Working: Documented Reach, Strategic Intent
The CA affirms that the USF was designed to “support widespread access to ICT services, support capacity building and promote innovation within the ICT sector.”
Since its operationalisation in FY 2016/17, the Fund has enabled “communities in the unserved and underserved areas to participate in the digital economy.”
Projects are selected based on principles such as “market efficiency and targeted interventions,” “smart subsidies and sustainability,” and “open and transparent stakeholder consultations.”
According to the CA, “selection of service providers is done in an open and transparent competitive process… to ensure that all Licensees contributing to the Fund have a fair and equal opportunity to receive USF funding.”
Director General David Mugonyi emphasised the tangible impact: “When you think of the impact of the USF, imagine Kora sub-location in Kajiado County, where small townships are mushrooming because of mobile connectivity in the area”.
Project Portfolio Overview
- 11 major projects documented, including mobile infrastructure, fibre connectivity, broadcast services, educational inclusion, and judicial automation.
- Estimated 1.6M+ beneficiaries reached across 47 counties.
Notable initiatives include:
- Digital Superhighway Project (DSHP): 2,193km of fibre laid; 541 institutions connected
- Mobile Infrastructure Phases 1–4: 369 sub-locations targeted; 155 connected to date
- Education Cloud & Assistive Tech: Content and devices for learners with print disabilities
- Agricultural Content Dissemination: Targeting 9,400 farmers across counties
Stakeholder Reflections
Ali Hussein, a respected digital policy advocate and KICTANet Trustee, welcomed the CA’s transparency but urged deeper reforms. “The scope of the portfolio, over KES 17.6 billion invested across 11 projects, underscores the scale and ambition of Kenya’s digital transformation agenda,” he noted.
However, Hussein also flagged critical gaps: “Only about 10% of the total USF portfolio reflects completed projects, despite more than eight years of operational activity. This is a significant achievement, but it also highlights an opportunity to accelerate project delivery and maximize value for underserved communities.”
He further recommended that “key metrics such as annual collections, disbursement rates, fund balances, and administrative costs would help stakeholders assess progress and efficiency.” On impact, Hussein emphasized the need for “beneficiary numbers, service quality improvements, and digital inclusion outcomes” to build public trust.
Importantly, he called for expanded public participation: “Grievance mechanisms and community input would enrich future interventions and policy alignment.”
What’s Missing: Transparency Gaps Persist
| Area of Concern | Status |
|---|---|
| Fund collection vs disbursement ratios | Not disclosed |
| Administrative cost breakdown | Absent |
| Impact assessment metrics | Not provided |
| Public consultation evidence | Limited |
| Project delays | Unexplained |
Benchmark Reality Check
- Kenya’s USF levy: 0.5% of operator revenue (global range: 1–6%)
- Disbursement rate: ~60% (above global average of 50%)
- Africa-wide comparison: Kenya among 23 of 37 active USFs
Urgent Recommendations for Reform
To strengthen public trust and accountability, stakeholders recommend:
- Launching a public USF accountability dashboard
- Publishing quarterly financial and performance reports
- Commissioning independent impact assessments
- Enhancing community consultation mechanisms
Big Picture: KICTANet’s Role in Driving Accountability
This exchange underscores KICTANet’s role as a multi-stakeholder platform fostering transparency in Kenya’s ICT sector. For over 17 years, KICTANet has catalysed policy reform and facilitated dialogue between government, industry, and civil society.
As CA continues to administer the USF, one principle remains clear: transparency is non-negotiable for digital inclusion and public trust.
Adapted from Mr Ali Hussein, KICTANet Board of Trustees Chairperson feedback on Linkdeln.