Communications Authority speaks out on Sh5.2b licence fee row

Communications Authority of Kenya chairman Ngene Gituku. (Photo: Andrew Kilonzi, Standard)

The Communications Authority of Kenya was Thursday hard-pressed to explain the circumstances under which it issued a telecommunication licence to Jamii Telecommunications Limited (JTL).

Reports published in a section of the media Thursday alleged that CA had issued Jamii Telecommunications a 4G network without charging the requisite spectrum fees.

Authority chairman Ngene Gituku, however, said the process of issuing the licence had been done according to laid down procedures and that no money had been lost.

Mr Gituku further said the permit issued to JTL was a trial licence for the a 4G network and not an operating licence.

"The Authority wishes to clarify that no money has been lost in the authorisation given to Jamii Telecom," he said at a press conference yesterday.

Mr Gituku added that the telco has been granted a licence to rollout a 4G network on a trial basis for a one year.

The licence was issued September last year.

He, however, declined to delve further into the issue, stating that the CA would issue further communication in due course after the board has met.

Mr Gituku further stated that the firm's board of directors had been convened for a special meeting to discuss the report alleging that Jamii Telecom had been issued with the licence irregularly but discussions failed to take off for lack of quorum.

"The Authority had convened a board meeting in short notice to deliberate on this matter... however due to the short notice, majority of the board members were not available to attend. We will issue a substantive statement on the matter in due course," he said.

The reports Thuesday claimed that Jamii Telecom had paid Sh100,000 for the 4G licence that would ordinarily have cost Sh2.5 billion.

This is also in addition to another Sh2.5 billion initial fee that an operator hoping to set up a mobile telephony business needed to pay the regular, which would mean CA was foregoing a total of Sh5.2 billion in licensing fees.

Other telcos have reportedly complained to the regulator, noting that the new licensee was getting an undue advantage due to the waiver.

In a rejoinder, however, Jamii Telecom insists that the firm had been issued with a trial licence after paying the requisite fees.

Joshua Chepkwony, chairman of Jamii Telecommunications, said his firm had in no way been given preferential treatment in the award of the licence.

"Jamii Telecommunications limited like any other business is entitled to apply and obtain the said licenses through the laid out procedures," said Mr Chepkwony.

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