Digital Economy Principal Secretary John Tanui when he appeared before the ICT committee /ENOS TECHE
The government’s ambitious plan to expand digital innovation hubs across the country is facing a major financing shortfall, stalling operations and delaying the rollout of equipment.
An analysis of the expenditures of the State Department for ICT and Digital Economy shows that over the past year some of those hubs have not posted any progress in their development phase.
The government pledged to roll out innovation hubs in every constituency as part of its digital economy blueprint.
Appearing before Parliament’s ICT Committee, Digital Economy Principal Secretary John Tanui blamed the stalled projects on budget cuts.
This led to accumulated pending bills totalling Sh1.03billion by June 2025, forcing suppliers and service providers go slow on the projects.
Tanui, said the liabilities and pending bills has forced the ministry to put on hold some of the planned projects.
“These bills are primarily from previous financial years and have persisted due to rationalisation of the budget, last-minute commitments and delays in exchequer releases. We are working with the National Treasury to authenticate and settle them,” Tanui said.
The PS told lawmakers that while the hubs targeted young people with access to digital skills, workspaces and internet connectivity, the program is struggling to keep pace with demand due to underfunding.
Dagoretti South MP John Kiarie decried the slow pace of equipping the hubs, saying underfunding could derail the government’s wider digital transformation agenda.
“Digital hubs are meant to democratise access to opportunities for young people. We must ensure they don’t turn into empty spaces due to lack of equipment and funding,” said Kiarie.
Tanui assured the committee that the ministry was working to secure more resources through partnerships and international financing.
He noted that demand for devices alone stands at about 145,000, yet the ministry has only secured 2,500 through the National Treasury and is seeking additional support from the World Bank to bridge the gap.
“We have deployed close to 3,000 devices in over 360 hubs, but this is a fraction of what is needed,” Tanui said.
He added that the government is in talks with the World Bank for 50,000 devices and with the Treasury to cover the remaining shortfall.
The PS said the Universal Service Fund had allowed the ministry to push forward some initiatives, including connectivity to schools and public institutions, but acknowledged that financing challenges had slowed down delivery.
“Young people across the country are waiting for opportunities in these hubs. Without proper resourcing, many of them are left struggling to access the tools they need within their communities,” he said.
The PS was also put on the spot over the plan by the government to install public WiFi spots across the country.
Keiyo South MP Gideon Kimaiyo who chaired the session questioned why the ministry was yet to roll out the spots across the country.
“Kenya currently operates about 1,500 free public Wi-Fi hotspots, with close to 400,000 people connecting daily and an estimated two million users each month. This has helped position Kenya among the top globally in terms of average daily internet usage,” noted the PS.
From the session it emerged that the Postal Corporation of Kenya is seeking cabinet approval for a ten-year waiver of Sh1.6 billion in licence fees, alongside recovery of Sh1.5 billion owed to it by government agencies.
