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Airtel Kenya's License Renewal Stalemate: A Sh2.15 Billion Conundrum

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 3 May 2021.

As of February 2015, Airtel Kenya has not paid for its license to operate in Kenya, due to an ongoing court case.

ICT Cabinet Secretary Joe Mucheru announced in late April that the telco risks parting with Sh2.15 billion for renewal of its operation license, which would also exempt it from selling 30% of its stake to local companies as required by law.

However, CS Mucheru stated that Airtel Kenya must first renew its practice license before the government can consider exempting it from the local ownership rule.

According to a report by Business Daily, published on April 30, 2021, Airtel Kenya is embroiled in a court dispute with the Communications Authority of Kenya over the renewal of its alleged expired license.

CS Mucheru explained, 'If they are operating without a license, how do we even grant them an exemption? We are still in court with them. I cannot give permission if they have not paid the license fee.'

The stalemate between CAK and Airtel Kenya has been ongoing for six years, with the telco struggling to overcome losses since its entry in the Kenyan market in 1999.

Airtel Kenya claims that after purchasing Yu Mobile spectrum and frequencies, the CA changed its position and demanded an additional Sh2.15 billion as a condition for renewing its operating permits.

As of March 2020, Airtel Kenya's loss stood at Sh5.61 billion, while Safaricom recorded a net profit of Sh74.6 billion.

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