KBC set for split as State registers Signet subsidiary

The attorney-general has registered Signet, the Kenya Broadcasting Corporation’s (KBC) subsidiary, paving the way for the split of the State broadcaster into infrastructure and content provider arms mid next month.

The registration also gives the Ministry of Information and Communications the go-ahead to constitute its board, which will recruit the top management personnel.

The separation of Signet from KBC is a crucial development in that it will boost the confidence of private operators who had been reluctant to use the platform to distribute their digital content, citing a skewed playing field.

Information PS Bitange Ndemo yesterday said that the move would make the corporation more competitive while protecting its mandate of informing the public without necessarily pursuing profits.

“The A-G’s office has registered Signet, which now gives us a go-ahead to split KBC into two. This should happen by mid next month,” said Dr Ndemo.

He added that the split has also been informed by the quest to have a new commercial wing that is free of debt and tap private financing from banks and the capital markets.

The corporation owes Japanese company NEC Sh20 billion in principal and interest for equipment supplied in 1991 at a cost of Sh2.3 billion.

“Nobody can pay the debts KBC has at the moment apart from the government, but by delinking the commercial from the public we are looking at a long-term solution of making the corporation financially independent,” said Dr Ndemo.

Signet will have a new managing director. However, KBC chief executive Waithaka Waihenya will retain his position and be a member of the yet to be constituted board.

The Treasury and KBC will jointly own the new company, which is expected to generate its revenue through distribution of digital broadcast content for third party television broadcasters at a fee.

The Communications Commission of Kenya said that market forces would determine the charges.

Other than Signet, the industry regulator has also licensed the China’s Pan Africa Network Group as the second signal distributor.
Already 11 channels, including broadcasters such as Nation Media Group, KTN and Kiss TV are on the Signet platform, which has gone live in Nairobi, Kiambu, Machakos and Kajiado. Pan Africa Network Group is yet to roll out their network.

The Signet platform for transmitting digital video broadcasting (DVB-T2) technology was switched on last Monday giving television viewers quality pictures. Viewers in Mombasa and Kisumu are expected to enjoy the high quality TV signal by the end of this month.
To receive clearer images, however viewers now using lower version convertor boxes called DVB-T1 have to either upgrade them or buy the new DVB-T2 gadgets.

CCK said that the new technology offers better picture and sound quality, 50 per cent more programme channels on one TV frequency and a larger coverage area by TV transmission station.