Acting KBC MD Samuel Maina sacked over Sh750 billion arbitration case

The acting Managing Director of the Kenya Broadcasting Corporation (KBC), Samuel Maina, has been sacked by the ICT Cabinet Secretary Eliud Owalo over his involvement in a controversial arbitration case that could cost the government over Sh750 billion.

According to a letter dated December 19, 2023, Mr. Maina was suspended with immediate effect for committing the government to pay the hefty amount in a London Court of International Arbitration (LCIA) case without the approval of the ministry.

The case involves a dispute between KBC and a Japanese company, NHK, over the termination of a digital broadcasting contract in 2019. NHK had sued KBC for breach of contract and claimed damages amounting to Sh750 billion, which is equivalent to 10% of Kenya's GDP.

Mr. Maina, who was the Editor-in-Chief of KBC before his appointment as the acting MD in March 2022, had allegedly signed a consent order with NHK in October 2023, agreeing to pay the amount in installments over 10 years. However, he did not consult or inform the ICT ministry or the Attorney General before making the commitment.

Mr. Owalo said that Mr. Maina's action was "grossly irregular, unlawful and in total disregard of the Public Finance Management Act" and that it exposed the government to "unprecedented financial risk". He also said that Mr. Maina had failed to perform his duties as the head of the state broadcaster and that he had lost confidence and trust in him.

The ICT CS has appointed Mr. John Njoroge, the Director of Finance and Administration at KBC, as the acting MD until a substantive one is recruited through a competitive process. He has also directed the KBC board to cooperate with the relevant authorities in investigating the matter and taking appropriate legal action.

Mr. Maina has not issued any statement on his suspension or the arbitration case. He had taken over from Dr. Naim Bilal, whose term expired on March 19, 2022. Dr. Bilal was a veteran journalist and media manager who had previously worked as the director of information at the ICT ministry and as a senior editor at the Nation Media Group.