Information, Communications and the Digital Economy CS Eliud Owalo has terminated the appointment of Samuel Maina as acting Managing Director of the national broadcaster, KBC.

In a letter to the chairman of the board, Benjamin K. Maingi, Owalo said Maina should proceed on suspension immediately and disciplinary action instituted against him.

“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, Communications and the Digital Economy as the acting managing director with effect from December 19, 2023 for six months or upon the appointment of a substantive Chief Executive Officer pursuant to Section 34 of the Public Service Commission Act, No. 10 of 2017,” Owalo said.

The CS said Maina allegedly committed the government to pay US$ 5 billion in LICA Arbitration No. 122233: Channel 2 Group Corporation versus Kenya Broadcasting Corporation without seeking concurrence with the ministry, the National Treasury and the Office of the Attorney General and the Department of Justice.

He said the alleged move by Maina was in total disregard of earlier instructions given to KBC.

The dispute dates back to 2009, when KBC abruptly terminated a joint venture agreement with Dubai-based businessman Ajay Sheth, owner of Channel 2 Group.