HE CHAIRS THE MEETING REGARDING A CRUCIAL MATTER BETWEEN TELKOM KENYA AND AMERICAN TOWER CORPORATION.
The Senate standing committee on Information, Communication and, Technology has convene a critical meeting today. This is in regards to a crucial matter concerning the nations’ telecommunication infrastructure and, the sale Leaseback Agreement between Telkom Kenya and, American Tower Corporation (ATC) Kenya. Trans-Nzoia Senator, Allan Chesang, chaired this crucial meeting in the Senate building.
The committees’ main objective was to address the concerns raised by investors who expressed hesitation in continuation of their investment in Kenya due to this matter. The ICT Chair presided the meeting where he invited the Chief Executive Officer of American Tower Corporation Mr. Thomas Sonesson to sit at the committee. Mr. Thomas has given the committee the valuable insights into the complexity of the agreement, the impact on investor confidence and, the steps ATC is taking to address these issues.
The American Tower Corporation Kenya CEO has told the ICT committee that Telkom MUST pay them Ksh650 million as down payment before they can reconnect them to their infrastructure. This comes after Telkom Kenya defaulted on its payment worth Ksh4 billion to ATC Kenya under their Master Leaseback Agreement for a Tower sale and Leaseback transaction that forced the telecommunication infrastructure owner and, provider to finance Telkom’s operations.
Mr. Thomas informed the senators that his corporation plays a critical role in realization of vision 2030 adding that they have already offered Telkom a deal in an attempt to make them operational and, thus, attract investors. In his statement the CEO said, ” Telkom Kenya has informed us that they want to be operational to attract investors. So, we have given them a proposal to pay at least Ksh650 million plus Ksh150 million in the following two months so that we can reconnect them to their infrastructure.”
Senator Allan Chesang who was chairing the committee meeting together with the members agreed that the issues at hand requires an urgent solution since Telkom hosts critical telecommunication infrastructure that’s of national security in nature and, pledged to do all it can to find a solution. Contributing to the discussion, Senator Shakilla a member of ICT committee has said that this is a serious issue that needs to be tactfully handled. Moreover stating that the committee needs to see the contract between ATC and, Telkom so that they can determine who breached the agreement.
The committee was also concerned about ATC Kenya’s claim that Telkom Kenya continues to deny them access to lease sites, thus violating lease terms and, affecting services like connectivity, mobile money transfers and, voice communication. Senator Cherargei adding that, they will need to summon Cabinet Secretary for Interior and Coordination of National Government, Hon. Kithure Kindiki, to share with them reasons why the police aren’t providing ATC Kenya with the necessary protection to access their sites.
The ICT committee resolved to invite Telkom Kenya, the Cabinet Secretary for ICT and, Digital Economy, The Competition Authority of Kenya and, the Attorney General to listen to their side of the story and, find a lasting solution. ICT Chairman, Sen. Allan Chesang has stated that the committee is dedicated to finding a lasting solutions that will not only restore investor faith, but also ensure the uninterrupted provision of telecommunication services to the citizens.
The Chair concluding that the telecommunication sector is a vital driver of the countrys economic growth and, they are committed to facilitate an environment that encourages sustainable investments. Both sides concluded with a commitment to work collaboratively towards a swift resolution of the matter.
Earlier, the Senate Liaison Committee, which consists of all Chairs of the senate committees held its weekly meeting to discus various issues affecting their Committees.
