Auditor-General Edward Ouko has issued a qualified audit opinion warning Kenya Broadcasting Corporation (KBC) of potential penalties over unpaid taxes and procedural violations, according to a 2019 report.
The audit revealed KBC failed to remit Sh6.7 million in taxes to the Kenya Revenue Authority (KRA) for the period ending June 2018. This included VAT breaches involving goods valued at Sh18,081,255 under the VAT Act, Cap 476. Ouko stated non-remittance could trigger heavy fines, with no justification provided for the shortfall.
KBC’s Digital Terrestrial Television (DVB2 Platform) project also violated the Public Finance Management Act 2012 by failing to maintain a fixed assets register. This omission contravened requirements for recording asset details like cost, depreciation, and custody. Additionally, equipment worth Sh892,988,931 imported from Spain remained unverified as of June 30, 2017, raising compliance concerns.
A 2015 contract for 12 standby generators valued at Sh35.9 million highlighted further issues. Only three units were delivered to an unauthorized site, Langata station. A 2018 review found nine generators undelivered, with no clarity on timelines or accountability for public funds, Ouko noted.
