The Authority within the current FY 2015/16 contracted Intelecon Research Ltd of Canada to undertake an ICT Access Gaps Study whose objectives were: 

•       To engage the industry and other stakeholders / service providers to identify the gaps in the ICTs service provision.   

•       Conduct an in-depth analysis of communication services in the country and map out access gaps in voice, data, broadcasting and postal &courier services at sub-location level across all counties in Kenya.

•       To support implementation of initial USF network expansion projects, grouping gap areas and special projects (e.g. schools connectivity) into optimal lots for purposes of tendering.

•      Develop an interactive portal for regular updates and definition of the gaps for each service area giving GPS coordinates for selected USF clusters and other socio-economic characteristics.

•       Develop a 5 year USF Implementation Strategy based on projected funding

•       Review the existing Operational Manual with a view of aligning it with relevant internal procedures of the Authority and procurement legislations.

 

The progress made To-date

•       The consultants have delivered an acceptable Final Access Gaps report herewith attached; Developed an interactive portal for regular updates by the Authority; Are currently reviewing the USF Operating Manual and thereafter develop the 5 year USF Implementation Strategy.

From the objectives of the ICT Gaps Study, it is clear the survey did not focus on the need to increase the USF levy amount neither did the study audit the use of USF funds. 

It should further be noted that even though the Act that created USF came into being in 2009, it was not until in the FY 2013/14 that the Authority issued the first USF invoices.

Universal Service Fund (USF) kitty has accumulated KES. 2.94 Billion from remittances by licensees while the Authority has contributed KES 1 Billion seed money to the fund putting the total collections at KES giving total collections to date at KES. 3.94 Billion. 

The Access Gaps Study Report (attached) has identified basic services and broadband gaps as the two priorities for USF investment in the FY 2016/17:

• Infrastructure Projects: Closing the voice gaps in the identified 214 sub-locations. This will reduce the population coverage gap from 5.6% of the population to around half (2.8%) by 2018. The USF distributes Funds through subsidies. Since USF subsidies will be distributed on a progressive basis as the awarded Lots are implemented, it is not expected that the USF will distribute more than 67% of the awards made in the first fiscal year of operation (2016/17), thus the final amount distributed in 2016/17 on the voice service project will be approximately US$ 10 M (KES 1 billion). 
• Broadband Connectivity in Secondary Schools in Kenya. The cost of braodband connectivity is estimated at KES. 500M.

 

These priority projects shall be implemented under the accepted guidelines of the USF and the existing procurement laws in Kenya which stress on transparency and competition in the distribution of funds.

USF Projects Implementation Plan

The Schools Connectivity project will be designed to run in parallel with the ICT Infrastructure (Voice) Project. The schedule of USF implementation is as follows;

• Project Design Report (scheduled for 27^th May 2016)
• Industry Workshop in the first week of June 2016.
• Bidding Documents will be available at end of June 2016.
• Awards of tender are expected to be made by early November 2016.
• Implementation of the USF projects 2017

 

Kindly note that the Authority is the secretariat to the Univeral Service Advisory Council (USAC) and can provide any information required. The CA website is updated with news items, publications, so make effort to equally follow us on online platforms and achievements to date. Lastly, we wish to clarify that the Universal Service Levy imposed under section 84J (3) of the Act is to be charged on all licensees offering communication systems and services on a commercial basis.  The Act provides for the Levy charged on licensees at an amount not exceeding one percent (1%) of the gross revenue of a licensee. However, the Authority's Board settled on 0.5% after due consultation with the industry. At no point has the Authority considered increasing the levy amount since the ICT voice gaps has considerably reduced to 5.6%. Any changes in the percentage of contribution will be subjected to industry consultations. 

Hope this gives you some insights that are helpful.  

Regards,