The import of 50 million telephone handsets in the country every two years has raised concern says Information Communication and Technology (ICT) Cabinet Secretary Joe Mucheru.
Mucheru said the government has set aside Ksh.1billion to help local start-ups in the Kenya mobile phone software and hardware segments to grow.
“Why can’t we leverage on the skills available locally to manufacture these handsets that are suitable for our markets?” he asked.
The CS told an annual meeting of industry players that he is concerned over imports of 50 million telephone handsets every two years.
ICT CS Joe Mucheru
ICT is one of the fastest growing sectors in Kenya’s economy due to demand for services like high speed internet access and mobile financial services like MPesa.
Kenya has 45.5 million mobile phone subscribers, data from the sector regulator shows.
The subscribers use a range of imported mobile devices from companies like Apple, Samsung, Tecno and Huawei.
Recently the Auditor-General Edward Ouko ,said the ICT Authority is technically bankrupt and cannot meet its financial obligations.
Accordding to him 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supporting documents were not presented for review.An examination of ICTA’s statements showed that Sh1.8 billion was withdrawn from the authority’s Citibank account on July 18, 2016.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.