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.