CS Eliud Owalo Sacks the Managing Director,KBC- Samuel Maina

The Ministry of Information and Communications Cabinet Secretary  Eliud Owalo  has sacked managing Director for KBC Samuel Maina.

CS  Owalo issued a letter to the board chairman, Benjamin K. Maingi, instructing Maina to be suspended immediately.

However,CS Owalo issued a disciplinary action that would  be initiated against him.

This followed the  appointment of  Paul Macharia, the Communication Economic Expert at the National Communications Secretariat-

as the new acting managing director, effective from December 19, 2023.

“I duly appoint Paul Macharia , currently the Communication Economic Expert at the National Communications Secretariat –

Which falls under the mandate of the Ministry of information and Communications,”CS Owalo said.

Thus, Macharia’s appointment is set for a period of six months or until a substantive Chief Executive Officer is appointed.

“He will  be the acting managing director with effect from December 19,2023 for six months or upon the appointment of a substantive Chief Executive persuant.”

This is in accordance with Section 34 of the Public Service Commission Act, No. 10 of 2017.

Additionally, the CS urged the board to expedite the recruitment process for a permanent MD for KBC.

Behind the scene

The decision to terminate Maina’s appointment stemed from allegations that he committed the government to pay $5 billion in the LICA Arbitration No. 122233 –

this involved Channel 2 Group Corporation versus Kenya Broadcasting Corporation, without seeking concurrence from the ministry, the National Treasury, and the Office of the Attorney General and Department of Justice.

Case unfold

Meanwhile,Owalo emphasized that Maina’s actions were in direct violation of previous instructions given to KBC.

Consequently,the dispute dated back to 2009 when KBC abruptly terminated a joint venture agreement with Ajay Sheth, the owner of Channel 2 Group based in Dubai.

Thus,the joint venture, formed in 2006, aimed to combine KBC’s technical resources with Channel 2’s programming content and staff to establish a new digital station.

However, the case ended up in arbitration in London,that prompted concerns from Parliament’s Budget and Appropriations Committee-

in 2021 regarding potential risks to taxpayers.

The board’s swift action in recruiting a substantive managing director would ensure the corporation’s operations continue smoothly.

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