NAIROBI, Kenya – The Ministry of Information, Communications and the Digital Economy has warned that proposed amendments to the Energy Act could disrupt Kenya’s broadband rollout and drive up the cost of digital infrastructure projects.
ICT Principal Secretary Stephen Isaboke said the plan by county governments to levy charges on public energy infrastructure without the approval of the Energy Cabinet Secretary would have “serious and far-reaching implications” for national connectivity programmes.
Appearing before the Senate Committee on Energy chaired by Senator Oburu Oginga, Isaboke said the changes risked fragmenting regulation, delaying project implementation, and raising costs for key initiatives such as the National Optic Fibre Backbone Infrastructure (NOFBI) and the Last Mile County Connectivity Project (LMCCP).
“While the ministry supports devolution and recognises the importance of empowering county governments, the proposed amendment would undermine national cohesion and efficiency,” he told senators on Tuesday.
Isaboke was accompanied by Communications Authority Director-General David Mugonyi, who also cautioned that the move could complicate ongoing efforts to expand access to affordable broadband across the country.
Revenue-sharing debate
Nairobi Senator Edwin Sifuna urged the ministry to ensure that counties benefit from revenues generated through ICT infrastructure mounted on Kenya Power’s transmission network.
“The PS should collect the revenue from ICT infrastructure on the Kenya Power line network and give it to counties,” Sifuna said, while calling for transparency on how much telecommunication firms pay to use public infrastructure.
Kakamega Senator Boni Khalwale backed the call for fairness, saying both levels of government should share income from infrastructure.
“Why can’t we provide a level playing field for both national and county governments so that the two levels of government share the benefits?” he asked.
Responding to the lawmakers, Isaboke defended the existing centralised model, arguing that it guarantees equitable redistribution of revenue through the national system.
“Centralisation helps pool resources together. County governments then receive the revenue as shareable funds,” he explained.
Legal and industry concerns
The ministry’s legal counsel, Pauline Kimotho, warned that devolving wayleave charges would create inconsistencies across counties.
“The issue is the unpredictability of levies from different counties. We need harmonisation and a standard rate for each county,” she said.
Technology Service Providers of Kenya (TESPOK) chief executive Fiona Asonga called for a friendlier regulatory environment, urging the Energy Ministry and the Energy and Petroleum Regulatory Authority (Epra) to introduce a special tariff for the telecommunications and data industry, similar to that offered to the manufacturing sector.
The ICT Ministry reiterated that both energy and communications regulation fall under the national government, as outlined in the Fourth Schedule of the Constitution.
It warned that allowing counties to impose independent levies could breach Articles 186 and 209(5), which prohibit taxes that undermine national economic policy or cross-county investments.
The ministry also noted that the proposed amendment contradicts the Digital Economy Blueprint (2019) and the ICT Strategic Plan (2023–2027), both of which emphasise harmonised and affordable infrastructure development.
“Uncoordinated levies would inflate broadband costs, delay rural connectivity, discourage private investment, and ultimately raise consumer prices for digital services,” the ministry warned.
Call for joint framework
To avert disruption, the ministry proposed developing a joint policy framework involving the Energy and ICT ministries and the Council of Governors to standardise wayleave charges and clarify roles between national and county governments.
It further recommended conducting a Regulatory Impact Assessment before any amendments are enacted to gauge financial and operational consequences.
“The amendment may boost county revenue in the short term, but it would destabilise the national framework for ICT deployment, drive up project costs, and delay broadband expansion,” the ministry concluded.
