MTN sues Iphone Global over Internet connection debt

Mobile Telephone Network (MTN) Business Kenya Limited has sued Iphone Global over a $97,604 (about Sh8 million) debt arising from provision of Internet services.

Iphone Global allegedly procured Internet services in 2009 and 2010 from MTN, which previously traded as UUNet Kenya, but has since refused to pay the dues as per their agreement.

MTN Business Kenya told the court that Iphone Global had failed and neglected to make any payment for the services and instead only made empty promises.

The sums were to be paid on a monthly basis on receipt of invoices from the plaintiff.

They said that the plaintiff had a meeting with the company directors and it was agreed on how the debt would be paid.

It later emerged that the company was selling its shares to Linkoff Communication Systems thereby prompting them to write to the buyer alerting it about the debt owed to them.

In 2013, MTN leased lines from Kenya Data Network, Telkom Kenya, Jamii Telecoms and Wananchi Group. It also launched a project to install its own fibre cable network.

They alleged that Iphone Global indicated that the potential buyer would settle the debt after the purchase of shares was concluded but this was not to be.

“No payment has been done since we sent our last demand and a judgment should be entered against the defendants,” said Mr Obare Nyaenga the chief accountant at MTN.

Mr Nyaenga claimed that Iphone Global has been escaping responsibility and it was high time that they honoured their side of the bargain.

MTN has also sued the directors of Iphone in their individual capacities saying that they were liable for all the claims they had before selling the company.

The court ordered that the company files its response to the case within 15 days.

Updated to remove incorrect references to Iphone Global as UUNet.