December 2, 2021 - The Communications Authority of Kenya (CA) has been left with a Sh1.07 billion debt after Telkom Kenya allegedly failed to repay the loan.
According to a report by the Auditor General, Telkom Kenya owes the CA Sh292 million in general provisions and Sh780 million in specific provisions, totaling Sh1.07 billion.
However, Telkom Kenya has denied the existence of the debt, with a letter dated December 21, 2020, stating that the company owes the CA nothing.
The Auditor General's report also revealed that the National Treasury had committed to providing Telkom Kenya with money for frequency spectrum fees for the financial year 2020/21, despite the company having provisioned for the bad and doubtful debt in full.
The report further stated that the accuracy and fairness of the reported receivables from non-exchange transactions balance of Sh310.82 million as of June 30, 2020, could not be confirmed.
The revelation comes just a few months after talks to merge Telkom Kenya with competitor Airtel Kenya Limited collapsed.
On February 8, 2019, the two companies had jointly announced the signing of an agreement to merge their respective Mobile, Enterprise, and Carrier Services businesses in Kenya.
