Fight For Control of Sh50B World Bank Cash Stirs Boardroom Wars at ICT Authority

A fierce boardroom battle has erupted at the Information and Communication Technology (ICT) Authority, with three directors shown the door following their opposition to the renewal of the CEO’s contract, in what insiders claim is a high-stakes struggle for control over a Sh50 billion World Bank project.

The Kenya Digital Economy Acceleration Project, approved in March 2023 and expected to run until October 2028, has become the focal point of an increasingly bitter dispute between State House officials and ICT Authority board members who claim proper procedures were ignored in extending CEO Stanley Kamanguya’s term.

“Together with all board directors, we approved renewal of contract for ICT Authority CEO Stanley Kamanguya against the wishes of some power mandates,” said Michael Njogi Wachira, one of the three ousted directors. “CS Kabogo was ahead to append his signature board resolutions for that renewal having satisfied himself that we followed the right process.”

The controversy intensified last month when ICT Cabinet Secretary William Kabogo ratified the decision to extend Kamanguya’s contract for three more years, despite objections from Felix Koskel, the Head of Public Service and State House Chief of Staff, who reportedly instructed all boards to seek guidance from his office before renewing contracts of CEOs.

Sources close to the matter allege an orchestrated scheme to remove Kamanguya from office, with claims that “power mandarins are now looking for technicalities to overturn CS’s signature and terminate the renewed contract for CEO.”

Another source familiar with the proceedings at the March 6 board meeting described how the chairperson “kept insisting that we adjourn,” but was overruled by other board members. When the chairperson realized “it was not going his way, he feigned sickness,” at which point a representative from the State Cooperation’s inspectorate advised the board that they could legally appoint a sessional chairperson who would chair the meeting.

The three dismissed directors—Annette Mutuku, Alfred Ngeno, and Michael Njogi Wachira—have filed complaints with the Ethics and Anti-Corruption Commission (EACC), claiming their removal was punishment for “standing with what was right.” They have also received summons from the EACC as part of the investigation.

“The fidelity to the rule of law that the board and Waziri Kabogo exercised is on the verge of defilement through arm-twisting of various agencies,” one director stated.

The Attorney General has issued an advisory declaring the board meeting “improcedural based on one-sided story and without hearing from the rest of the board members,” a determination the sacked directors describe as “suspicious and malicious.”

The dismissed directors have been replaced by Leah Manyarkiy, Christopher Matsehe Ndaica, and Dominic Salvio Kariuki Wambugu.

Several government departments stand to benefit from the World Bank-funded project, including the Ministry of ICT and the Digital Economy, Office of the Data Protection Commissioner, Communications Authority of Kenya, Ministry of Public Service, Ministry of Investments, Trade and Industry, the Cabinet Office, Office of the Attorney General, and the Kenya Revenue Authority.

As the dispute continues to unfold, questions remain about the future management of the Sh50 billion project and whether the procedural concerns raised by both sides will be adequately addressed by investigating authorities.