CA threatens to withdraw Telkom Kenya licence over Ksh.9.4B debt

Thousands of employees at Telkom Kenya could
lose their jobs as the government has threatened to withdraw the firm’s
licence.

Communications Authority of Kenya (CA) CEO
Ezra Chiloba says the State agency will not renew Telkom’s licence owing to
its huge debt burden amounting to Ksh.9.4 billion.

Chiloba made the shocking revelations when he
appeared before a joint committee of Parliament probing the Telkom Kenya buyout
on Tuesday.

“What this means is that when Telkom comes under
review for a new licence, which is due next year, most likely the authority
will not grant that licence,” said the CA boss.

“There are major regulatory issues that we’re
concerned about. When I talk about Ksh.9.4 billion, at the time we wrote the
letter to National Treasury, it was Ksh.7.2 billion…but the data has since
escalated.”

Chiloba said some service providers like the
American Tower that leases towers to Telkom Kenya to operate could also pull
out their services soon.

“If American Towers decides to shut down Telkom, it means the customers of
Telkom Kenya will not be able to receive the service,” he noted.

Early in the day, Keiyo South Member of
Parliament Gideon Kimaiyo revealed to the committee that there were already
plans underway to sell all shares held by Jamhuri Holdings and the government
of Kenya to another entity; claims that Telkom Kenya board Chair Edward Njoroge
confirmed to the committee.

MPs accused the Telkom Board Chair of being
used by the Mauritius and Cayman Islands-based Helios Company to micromanage
the company in their favor.

Mr. Njoroge was hard pressed to explain his
role in the irregular buy out of the firm.