The controversial fund, criticised by the network operators, is aimed at supporting broadband penetration in rural areas of the country.
Ben Gituku, chairman of the Communications Commission of Kenya (CCK), said the administrative structure and members are in place and will start implementing the fund this month.
It is anticipated that CCK will collect KSh869 million (US$10 million) in the next financial year.
The USF fund reportedly needs around KSh74.5 billion (US$864 million) to bridge the existing ICT gap.