A Parliamentary watchdog has accused the State Department for Broadcasting and Telecommunications of mismanaging funds earmarked for advertising, printing, and distributing the MyGov pullout in leading dailies, amid concerns that taxpayers may not have received value for more than Sh500 million spent.

The controversy stems from audit queries in the Auditor-General’s report for the financial year ending June 2023, which flagged payments made through the Government Advertising Agency (GAA).

The agency oversees the placement of government notices and advertisements in the MyGov supplement, published by contracted media houses.

The National Assembly’s Public Accounts Committee (PAC), chaired by Butere MP Tindi Mwale on Tuesday questioned whether circulation figures were verifiable, noting that despite repeated directives, the GAA had failed to provide clear records on how many copies were printed, distributed, or returned.

According to the Auditor-General’s report, the expenditure included printing, advertising, and information supply services amounting to Ksh495,389,974, paid by the Government Advertising Agency (GAA) to four newspapers for printing and inserting the MyGov publication.

However, a review of contract documents showed that the revenue generated from advertisements placed in MyGov did not fully offset the amounts paid to the four media houses.

“In the circumstances, the value for money from the expenditure of Ksh495,389,974 could not be confirmed,” the Auditor-General observed.

Payment to Specific Media Houses

Gatundu South MP Hon. Gabriel Kagombe criticized the payments made specifically to, The People Daily newspaper, alleging that the media outlets had long ceased printing yet continued receiving payments.

“The State Department is telling us they paid for printing and distribution, yet some newspapers mentioned here like People Daily Newspaper had even stopped printing. They are no longer printing paper,” Kagombe declared, urging the committee not to expect satisfactory answers from the officials.

“They claim to have paid for printing and distribution, but this is outright theft of public funds. This committee has repeatedly asked the PS to monitor what goes to the press, how many copies are printed and how many are returned. They have refused, and the only reason is that theft is taking place in that State Department,” he charged.

Isaboke Defends GAA

The Principal Secretary (PS) for Broadcasting and Telecommunications, Stephen Isaboke, appearing before the committee for the first time since his appointment four months ago, defended the agency.

He explained that the accounts under review covered the financial year ending June 2023, when the People Daily was still in operation and had a valid contract with the GAA, insisting that the transactions were legitimate.

He insisted that the government was spending far less on advertising under the centralized system than it had before.

“Historically, government expenditure on advertising was much higher. The GAA was established to plug this gap and bring efficiency. While the system is young and still on a learning curve, the intention is to deliver services more efficiently,” Isaboke said.

He acknowledged challenges in revenue projections such as a forecast of Sh1 billion in advertising revenue which yielded only Sh441 million but attributed the shortfall to ministries, departments, and agencies failing to pay for services on time.

PS Pressed to Table Evidence

Rarieda MP Dr. Otiende Amollo pressed PS Isaboke to table documentary evidence comparing government advertising costs before and after the creation of the Government Advertising Agency (GAA).

“You stated that prior to the GAA, cumulative government spending on advertising was higher than it is now. If that is the case, then provide an analysis of the three years before GAA was established against the three years under its management. Only with such evidence can we determine whether there is value for money,” Amollo, who is also a senior counsel argued.

Amollo further questioned whether the government was deliberately sidelining certain newspapers when placing advertisements.

His concerns were echoed by Samburu West MP Naisula Lesuuda, who asked: “What informed the government’s decision not to advertise directly with media houses? This raises the question of whether some newspapers are being deliberately excluded.”

Govt and Media Houses

In response, PS Stephen Isaboke dismissed the claims, stating: “Government has no policy of discriminating against any media house. That would be unconstitutional. Any outlet that meets procurement requirements is eligible to do business with the government.”

However, Kagombe pressed the PS to provide concrete data on the circulation of the MyGov publication specifically, how many copies were printed, how many were distributed, how many were returned, and who verified the figures.

“Can the PS demonstrate, with certainty, how many copies were printed during that year and how many actually reached the public? Did the government truly communicate with the people?

“Without such data, how do we know these publishers didn’t just print a single copy? That is the evidence we need tabled before us, proof that value for money was achieved,” he insisted.

GAA Revenue Targets

The Gatundu South legislator further questioned why the agency consistently failed to meet revenue targets, warning that unrealistic projections could mask deliberate over-expenditure.

“We want a breakdown of the Ksh1 billion projection, how you expected to raise it, how much was realized, and whether you are over-projecting to justify overspending,” said Hon. Kagombe.

Turkana Central MP Emathe Namuar raised concern over what he termed as blatant overspending by the GAA, accusing it of operating outside its allocated budget.

Namuar questioned why the agency consistently exceeded its allocation from the National Treasury.

“Why doesn’t the agency spend within the budget given by Treasury? And whenever you go beyond your allocation, is there any formal communication to show that the funds are exhausted? Otherwise, this appears to be another window of looting,” he said.
Nevertheless, the Turkana Central legislator suggested that the government should move away from costly print adverts to digital platforms.

The PS responded that while digital was desirable, the law currently requires certain notices to be published in print.

“We would welcome a review of the law to allow hybrid digital and print publication. Most young people consume news online, but as it stands, we must comply with the law mandating print,” he explained.

While directing the State Department to table within two weeks a detailed report with circulation data, expenditure comparisons, and verification mechanisms, Tindi Mwale reminded the PS that the audit query under review concerned value for money, not merely budgetary allocations.

Broadcasting PS Stephen Isaboke appearing before PAC on September 9, 2025. PHOTO/Parliament.