Sacked directors point finger at State House

A Sh50 billion project funded by the World Bank is at the heart of a fierce boardroom battle that has seen three directors kicked out and a chief executive officer fighting for survival.

The controversy revolves around a State House directive that was ignored by the Information and Communication Technology (ICT) Authority board, which has now sucked in the Ethics and Anti-Corruption Commission (EACC).

The matter arose after the board extended CEO Stanley Kamanguya’s term, which expires in August, for three years against the wishes of State House Chief of Staff and Head of Public Service Felix Koskei.

Koskei has instructed all boards to seek guidance from his office before renewing contracts of CEOs. 

After ICT Cabinet Secretary William Kabogo ratified the decision last month, three board members have been sent packing while the chairperson, Sylvanus Maritim, has been moved to head the Kenya Industrial Estates.

Those whose appointments were revoked for not "adhering to the laid down procedures" are Annette Mutuku, Alfred Ngeno and Michael Njogu Wachira.

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

The board members also claim the machinations were purely informed by the Sh50 billion World Bank project dubbed "Kenya Digital Economy Acceleration Project," meant to support the development of the digital economy, one of Ruto’s flagship projects.

The project was approved in March 2023, and came into effect in February last year, and is expected to close on October 31, 2028.

According to Wachira, there was "an orchestrated scheme to hound from office the CEO and that the power mandarins are now looking for technicalities to overturn CS's signature and terminate the renewed contract for the CEO.”

“I didn't support CEO renewal because of where he comes from but on account of the evaluation we had done in the last 2 years, and so did all the other board directors. My revocation from the board four days ago was a punishment for standing with what was right.”

“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. Even after the removal, I will record my statement and state the process as it were.”

Another source confirmed that the decision to extend Kamanguya’s contract was arrived at after a board meeting on March 6 agreed that he was fit for the job, and that only the chairperson was mounting roadblocks for the exercise.

“During the board meeting, the chairperson kept insisting that we adjourn but all nine board members overpowered him. When he realised that it was not going in his way, he feigned sickness and excused himself but the Inspectorate of State Cooperation’s representative advised us that the law allowed us to appoint a sessional chairperson who would chair the meeting, that is how Kamanguya’s term was extended,” the source added.

According to the director, the board later passed their deliberations to Kabogo, who ratified the decision, only for the chairperson to write a complaint that the decision was illegal and did not adhere to procedure.

“That is how the Attorney General issued an advisory that the meeting was unprocedural based on one-sided story and without hearing from the rest of the board members, which we find suspicious and malicious,” the source said.

The three sacked directors have already received summons letters from EACC. They were replaced by Leah Manyarkiy, Christopher Matseshe Naicca, and Dominic Salvio Kariuki Wambugu.

The beneficiaries of the project are ministries, departments and Agencies in the Ministries of Information, Communication and the Digital Economy (ICTA, Office of the Data Protection Commission; Communications Authority); the Ministry of Public Service, Performance and Delivery Management (Huduma Secretariat).

 Other beneficiaries are the Ministry of Investments, Trade and Industry, the Cabinet office, the office of the Attorney General, the Kenya Revenue Authority, the Ministry of Health and the Judiciary, who will benefit in the second phase respectively.