MPs Expose National Communication Secretariat Governance Crisis Over KSh50 Million Mortgage Fund

NAIROBI, Kenya – A parliamentary committee has raised concerns over governance and financial accountability at the National Communication Secretariat (NCS) after uncovering what lawmakers described as a 25-year governance vacuum and an unaccounted KSh50 million staff mortgage fund.

Officials from the State communications agency appeared before the Public Investments Committee on Social Services, Administration and Agriculture (PICSSAA) on Wednesday, July 29, 2026, where Members of Parliament questioned the agency’s operations and financial management.

The session exposed long-standing governance challenges and prompted demands for fresh documentation on the agency’s finances and legal status.

MPs Raise Concerns Over 25-Year Governance Gap

During the hearing, NCS Chief Executive Officer George Nyaory admitted that the agency has operated without a board of directors since it became operational in February 1999.

He explained that the Kenya Information and Communications Act, 1998, did not provide for the establishment of a board to oversee the agency.

However, PICSSAA Chairperson Emmanuel Wangwe, the Navakholo MP, questioned how the agency had managed public resources for more than two decades without an oversight body.

“You are on your own, and it is never done like that,” Wangwe told the agency’s management.

Lawmakers also questioned whether the Secretariat operates as a government department or a State corporation, saying the uncertainty had created an institutional identity crisis.

The committee urged the agency to seek a clear legal framework through Parliament.

Committee Demands Answers on KSh50 Million Mortgage Fund

The committee also scrutinised a KSh50 million staff mortgage scheme that the Government allocated to the agency in 2022.

According to MPs, the Secretariat received the money but failed to operationalise the scheme.

Instead, officials placed the funds in an operational bank account.

Although the agency’s Head of Finance told the committee that the money had earned approximately KSh3 million in interest, lawmakers demanded proof that the principal amount remained intact.

The committee ordered the agency to submit certified bank statements for verification.

Members expressed concern that officials may have diverted the funds to meet operational expenses.

Audit Exposes Human Resource Challenges

The committee also reviewed audit findings showing that the agency lacked approved human resource policies for several years.

As a result, many employees remained in the same job grades for decades because the agency had no career progression framework.

Saboti MP Caleb Amisi questioned how the Secretariat expected to motivate staff without promotions.

“Have you done any promotions? And now that you haven’t, how are you keeping staff motivated?” Amisi asked.

Lawmakers also heard that the agency paid some employees without a standard grading structure, leading to cases of both underpayment and overpayment.

In addition, the committee noted that employees on fixed-term contracts did not qualify for the mortgage scheme despite the allocation of public funds.

CEO Defends Management

Nyaory defended the agency’s management and told the committee that the Secretariat approved new human resource instruments in 2025.

He said the reforms allowed the agency to transition employees to permanent and pensionable terms and establish a proper career progression structure.

However, Chairperson Wangwe criticised the management for failing to address governance challenges much earlier.

He argued that other agencies created under the same law had already modernised their structures.

Committee Orders Fresh Documents

The committee directed the National Communication Secretariat to submit a revised asset register and certified bank records for further examination.

Meanwhile, lawmakers warned that they would recommend further action if the agency failed to provide satisfactory explanations for the outstanding audit queries.

The committee also vowed to pursue accountability over the KSh50 million mortgage fund and address the governance gaps that have affected the agency for more than two decades.

The findings are expected to inform the committee’s report to the National Assembly, which could recommend administrative and legislative reforms at the Secretariat.