CA director general Francis Wangusi. [Photo/the-star.co.ke]
Airtel Kenya has accused the Communications Authority of Kenya (CA) of dishonouring the agreement that led to the mobile phone firm’s purchase of Yu Mobile.
According to Airtel, CA dishonored the agreement by disclosing a demand for $20.025 million (Sh2.06 billion) in spectrum fees after the acquisition.
The mobile operator has insisted that the CA had promised to merge its operating licences with the ones it purchased from Yu Mobile in 2014 for the $6.976 million (Sh718 million) it paid to acquire the rival firm.
Airtel claims that its newly-acquired licences are due to expire on January 27, 2025 but shortly after it paid the Sh718 million in December 2014, the CA shifted goalposts and demanded an additional Sh2.06 billion as a condition for renewing its operating permits.
The telecoms operator say it would have abandoned the Yu Mobile deal had the regulator disclosed it would demand separate spectrum fees of Sh2 billion.
“The decision (Sh2 billion demand) came after the applicant had helped clean up the problem of Essar’s imminent liquidation and the amount of $20.02 million cannot be recovered due to the fact that Essar has long exited the Kenyan market,” says Airtel in fresh court documents. Indian giant Essar owned Yu Mobile.