Telkom settles Sh693m Safaricom inter-connection bill

What you need to know:

Telkom Kenya is yet to settle another Sh76.1 million debt that arose from a site and co-location contract Telkom Kenya had with Essar — which Safaricom took over after it bought Essar telecom’s frequency management spectrum last year.

Telkom Kenya has paid a long-outstanding Sh693 million claim it owed Safaricom for interconnection charges.

Steve Chege, Safaricom director for corporate affairs, however, says Telkom Kenya is yet to settle another Sh76.1 million debt that arose from a site and co-location contract Telkom Kenya had with Essar — which Safaricom took over after it bought Essar telecom’s frequency management spectrum in a joint acquisition that saw Airtel buy Essar’s subscribers and GSM licence last year.

The intended sale of the 70 per cent stake that France Telecoms owned in Telkom Kenya prompted the leading mobile operator to seek legal redress over the matter.

“The parties are in discussion as to how Telkom Kenya will repay this amount (Sh76.1 million) to Safaricom. After this is done the court matter will be marked as settled.” Mr Chege, said in a response to the Business Daily queries.

In April Telkom Kenya and Safaricom had reportedly signed a consent of agreement, which was filed in court, to the effect that the mobile operator would settle the Sh693 million it owed Safaricom by May 1.

However, Helios Investment Partners— the new majority owners of Telkom Kenya — requested for more time to enable the approval of the sale agreement by the Cabinet.

The sale agreement of the 70 per cent stake that France Telkom owned at Telkom Kenya was completed on June 15. Under the new share ownership structure Helios controls 60 per cent stake and the government of Kenya 40 per cent.

In April, Telkom Kenya also paid Sh300 million in part settlement of the Sh1.5 billion it owed to the Communications Authority of Kenya in frequency fees arrears.