Safaricom gets go-ahead on Sh15bn security contract

What you need to know:

The signing means the mobile services giant can begin building the Sh14.9 billion secure communications network.

Safaricom has signed a deal with the Kenya Government to construct a security system worth Sh14.9 billion (about $165 million) in Nairobi and Mombasa.

The contract clears the way for the mobile services giant to begin building a secure network to connect the country’s police stations and help fight crime.

The proposed system, expected to be completed in 18 months, includes street cameras in the two cities linked to the National Police Operations Centre.

The deal was signed at a ceremony at Harambee House Tuesday was attended by Safaricom CEO Bob Collymore and Interior secretary Joseph Ole Lenku.

Also at the event were principal secretaries Monica Juma (Interior) and Kamau Thugge (National Treasury), and Inspector General of Police David Kimaiyo.

The awarding of the security contract had initially sparked controversy with critics complaining Safaricom got the deal without an open bidding process.

In July, however, a parliamentary committee looking into the matter gave the project the go-ahead saying recent terror attacks justified such a deal.

Under the terms of the five-year deal, Safaricom will complete the Sh15 billion project (exclusive of taxes) at its cost and, thereafter, hand over its operations to the National Police Service.

The Government will use the service at no cost for the first year of its operation and only start paying for it through a series of annual installments beginning in 2016.