The Ministry of Information, Communications, and the Digital Economy has opposed a proposed amendment to the Energy Act that would allow county governments to collect wayleave fees directly from telecommunications companies.
Appearing before the Senate Committee on Energy chaired by Siaya Senator Oburu Oginga, ICT Principal Secretary Stephen Isaboke warned that the move could disrupt the rollout of key national broadband projects and lead to unregulated extra charges on internet services.
The amendment seeks to grant county governments the power to levy charges on public energy infrastructure without approval from the Cabinet Secretary for Energy and Petroleum. However, the ICT Ministry cautioned that such a change would fragment regulation, slow project implementation, and increase the cost of doing business in the ICT sector.
“While the Ministry supports devolution and recognises the importance of empowering county governments, the proposed amendment would undermine national cohesion and efficiency,” said Isaboke.
He added that uncoordinated levies could inflate broadband costs, delay rural connectivity, discourage private investment, and ultimately raise consumer prices for digital services.
Currently, Kenya operates a centralised system where Kenya Power collects wayleave fees on behalf of county governments. Telecommunications companies pay the utility firm, which then remits the funds to counties. The arrangement ensures consistency and avoids unpredictable fees that could hinder digital infrastructure projects such as the National Optic Fibre Backbone Infrastructure (NOFBI) and the Last Mile County Connectivity Project (LMCCP).
However, the system has sparked revenue disputes between counties and Kenya Power. Earlier this year, Nairobi County and the utility firm clashed over a Ksh4.9 billion wayleave fee claim.
Senators, including Edwin Sifuna and Bonny Khalwale, urged the ministry to ensure counties benefit fairly from ICT infrastructure revenues. Meanwhile, Fiona Asonga, CEO of the Technology Service Providers of Kenya (TESPOK), called for a special electricity tariff for the telecommunications industry to lower operational costs and promote digital growth.
