CS Owalo Fires KBC Managing Director Samuel Maina Over Ksh769B Blunder
The decision comes in the wake of a controversial commitment made by Maina to pay $5 billion (Ksh769 billion) in the LCIA Arbitration No. 122233: Channel 2 Group Corporation versus Kenya Broadcasting Corporation.
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The Ministry of Information, Communications, and the Digital Economy led by Cabinet Secretary (CS) Eliud Owalo has announced the termination of Samuel Maina as the acting Managing Director of the Kenya Broadcasting Corporation (KBC).
The decision comes in the wake of a controversial commitment made by Maina to pay $5 billion (Ksh769 billion) in the LCIA Arbitration No. 122233: Channel 2 Group Corporation versus Kenya Broadcasting Corporation.
The Ministry in a statement expressed dismay over the commitment made by the acting Managing Director without seeking the necessary approvals from key government entities, including the Ministry itself, the National Treasury, and the Office of the Attorney General and Department of Justice.
KBC offices in Nairobi. /FILE
Furthermore, Owalo described the action by Maina as a "total disregard of earlier instructions" given to the Kenya Broadcasting Corporation on the matter.
"The appointment of Mr. Samuel Maina as acting Managing Director is terminated with immediate effect. Mr Samuel Maina should proceed on suspension immediately and disciplinary action instituted against him by the Board," the statement read in part.
Other directives include as follows:
- Paul Macharia, currently serving as the Communication Economic Expert at the National Communications Secretariat under the Ministry, has been appointed as the new Acting Managing Director.
- This appointment is effective from December 19, 2023, for a period of six months or until the appointment of a substantive Chief Executive Officer in accordance with section 34 of the Public Service Commission Act, No. 10 of 2017.
"Meanwhile, the board is instructed to expedite the process of recruitment of a substantive Managing Director for the corporation," Owalo added.
The contents of the letter obtained by Viral Tea dated Monday, December 18 revealed that Maina had given the go-ahead to offer Channel 2 Group the Ksh769 billion in full.
"We have noted the contents of your email and wish to instruct you to proceed and offer Channel 2 Group Corporation the total sum of US Dollars 5 Billion in full and final settlement of the matter on a without prejudice basis.
"Please communicate this final offer to them and keep us informed of their response on the same," the letter read in part.
Maina, a former Vice-President of the Kenya Editors’ Guild, was appointed as Acting Managing Director (MD) of KBC following the exit of Naim Bilal, whose contract expired on March 19, 2022.
“The Board takes this opportunity to thank Dr Naim Bilal for his services at the corporation,” a statement by the board confirmed Maina's appointment.
The sudden shakeup at the Kenya Broadcasting Corporation raises questions about the decision-making process and financial commitments made without due consultation with relevant government bodies.
The commitment to pay $5 billion (Ksh769 billion) in the ongoing arbitration case has triggered concerns about financial implications and potential ramifications for the public broadcaster.
