Senate ICT Committee Pledges to Find a Solution to the Telkom and ATC Kenya’s Stalmate
The Senate Committee on Information, Communication and Technology, chaired by Trans Nzoia Senator Allan Chesang, has resolved to invite Telkom Kenya and American Tower Corporation to a meeting over a controversial telecommunications tower sale and leaseback transaction.
While seeking the Committee’s intervention on the matter, ATC Kenya has informed the Members of the Committee that Telkom Kenya owes them a Kshs4 billion debt over a telecommunications tower sale and leaseback transaction dated October 2018.
However, the telecommunication company has defaulted on its payment obligations despite ATC Kenya providing services and upholding its end of the bargain in their Master Site License Agreement.
“It is not sustainable for ATC Kenya to continue bearing energy-related costs on behalf of Telkom Kenya. We issued a formal notice to Telkom in April 2023 that we cannot continue to provide services without payment,” ATC Kenya’s CEO Mr Thomas Sonesson said.
The telecommunications infrastructure provider was responding to the comments made by the Cabinet Secretary in the Ministry of ICT and Digital Economy, Mr Eliud Owalo, while he appeared before the Committee last week that ATC Kenya has shut down some critical infrastructure pertaining to Telkom, thus affecting the delivery of services to Kenyans.
“Telkom Kenya failed to meet its financial obligations to ATC Kenya because it is not in a position to pay. So, we need to find a solution swiftly because some of the infrastructure that is in the possession of Telkom is of national security nature,” CS Owalo said.
The Members of the Committee have subsequently resolved to meet with the two antagonizing sides in order to dig deeper into the matter and find a lasting solution.
Post Author
