The Ministry of Information, Communications and the Digital Economy has warned that a proposed amendment to the Energy Act could disrupt the rollout of national broadband and digital infrastructure.

Appearing before Senate Committee on Energy chaired by Dr. Oburu Oginga, the ministry was represented by Principal Secretary, Stephen Isaboke. 

The amendment seeks to allow county governments to levy charges on public energy infrastructure without first getting approval from the Cabinet Secretary for Energy and Petroleum.

In a submission to the Senate Committee on Energy, the Ministry said the proposal could have “serious and far-reaching implications” for national connectivity projects.

It warned that the plan would fragment regulation, slow down project implementation, and raise costs for critical networks such as the National Optic Fibre Backbone Infrastructure (NOFBI) and the Last Mile County Connectivity Project (LMCCP).

“While the Ministry supports devolution and recognizes the importance of empowering county governments, the proposed amendment would undermine national cohesion and efficiency,” the statement read in part.

During the Senate session, Nairobi Senator Edwin Sifuna urged the Ministry to ensure counties benefit from revenues generated through the ICT infrastructure mounted on the Kenya Power transmission network.

“The PS should collect the revenue from ICT infrastructure on the Kenya Power line network and give it to counties,” Senator Sifuna said. He also asked the Ministry to disclose how much telecommunications companies pay for using public infrastructure.

Senator Boni Khalwale supported the need for fairness, saying both levels of government should benefit from infrastructure-related revenues.

“Why can’t we provide a level playing field for both national and county governments so that the two levels of government share the benefits?” he posed.

Responding to the senators, Principal Secretary for ICT Stephen Isaboke defended the centralized revenue model, saying it ensures equitable distribution through the national system.

“Centralization of revenue from the Kenya Power line network helps in pooling resources together. County governments then get the revenue as shareable resources,” PS Isaboke explained.

Ms. Pauline Kimotho, legal counsel for the ICT Ministry, added that the major challenge with devolving such charges lies in the lack of consistency among counties.

“The issue is the unpredictability of levies from different counties. We need harmonization and a standard rate for each county,” she said.

Fiona Asonga, CEO of the Technology Service Providers of Kenya (TESPOK), called for a more supportive regulatory environment for the data industry.

“We are requesting a special tariff from the Ministry of Energy, through EPRA, for the telecommunications and data industry—just like the special tariffs extended to the manufacturing sector,” Ms. Asonga said.

The Ministry reiterated that both energy and communications regulation fall under the National Government as outlined in the Fourth Schedule of the Constitution. It warned that giving counties independent power to impose wayleave fees could create legal conflicts and breach Articles 186 and 209(5), which bar counties from introducing taxes that harm national economic policy or cross-county investments.

Officials further noted that the proposal contradicts national frameworks such as the Digital Economy Blueprint (2019) and the Strategic Plan (2023–2027), which emphasize harmonized and affordable infrastructure rollout.

“Uncoordinated levies would inflate broadband costs, delay rural connectivity, discourage private investment, and ultimately raise consumer prices for digital services,” the Ministry warned.

To avoid disruptions, the Ministry proposed a joint policy framework involving the Energy and ICT ministries and the Council of Governors to standardize wayleave charges and align roles between the two levels of government.

It also called for a Regulatory Impact Assessment (RIA) before the amendment is enacted to assess its financial and operational implications.

“The amendment may boost county revenue in the short term, but it would destabilize the national framework for ICT deployment, drive up project costs, and delay broadband expansion,” the Ministry concluded.