CS Matiang’i has sensationally claimed the mobile network operator procured litigants to block thin-Sim technology fronted by Equity Bank

Kenya: Safaricom Ltd has been named in a scheme to delay the roll-out of alternative technologies in the local market.

Information, Communication and Technology (ICT) Cabinet Secretary Fred Matiang'i alleged that the provider of converged communication solutions was paying litigants to delay the roll-out of alternative technologies, in reference to Equity Bank's suspended cash transfer services.

The allegations, if confirmed, could introduce a new angle in an ongoing battle between Safaricom and Equity Bank. Dr Matiang'i said Kenya had become the 'laughing stock' of Sub-Saharan Africa over failure to effect proper regulation of the telecommunication sector, where Safaricom's declaration as dominant was 'long overdue'.

"After the same player fails in Parliament, they procure litigants to go to court and waste time only to delay the development that would spur competition..." Mr Matiang'i said in an address to Business journalists yesterday.

He added that the Government had done everything possible to ensure the thin-SIM technology in use by Equity's money transfer service was safe before the roll-out in Kenya.

"We consulted everyone, talked to the European body on Standards and the regulator did the right thing," he said in defending his stand.

However, when the allegations were put to Safaricom CEO Bob Collymore he was reluctant to respond directly to the claims by the CS but was quick to point out that he could act if the matter was officially communicated to the company.

"He should say it publicly so we can deal with it," he said in a text message to this writer.

The High Court last year suspended the introduction of the thin-SIM technology pending the determination on a case filed by a litigant, Legal Advice Centre (LAC).

Security risks

The Centre had alleged that the Communications Authority of Kenya (CA) approved the technology fronted by Equity Bank before a full audit was done on its security risks.

Earlier in September last year, the National Assembly's committee on Energy, Information and Communication Technology had stopped Equity's plans - which had been approved by the CA. The committee chaired, by Kigumo MP Jamleck Kamau, was investigating fears that the technology carried security risks when used on the main SIM card.

"If the CA continues with the roll-out plans and the matter is under investigations by Parliament, the authority will face full consequences if anything goes wrong," Mr Kamau once warned the communication regulator.

Matiang'i reiterated that Safaricom should be declared a dominant player in a rather controversial sentiment with far-reaching implication for mobile telephony. Citing examples from Nigeria and Ghana where the big mobile phone providers have been declared dominant, he said Kenya's situation was worse and that Safaricom should long have been affirmed.