Kenya: Essar Agrees to Pay KDN in Sh133 Million Row


Mobile phone service provider Essar Telkom has agreed to pay Kenya Data Networks (KDN) Sh25 million upfront and Sh6.2 million in equal monthly instalments to settle a dispute involving Sh133 million.

The parties recorded the consent in the Nairobi High Court where Essar owners of the Yu mobile brand, also agreed to pay KDN Sh6.2 million a month until an arbitrator concludes the dispute. However, failure by Essar to settle Sh24,948,900 within 14 days, the agreement would automatically lapse.

According to the consent, the lump sum includes arrears for services KDN rendered to the mobile firm in the past four consecutive months from May to August this year. The parties agreed that KDN would not interfere with its services to Essar until the arbitrator makes its final findings.

"KDN will not interfere with the 186 sites of inter-connections to other mobile telecommunications industry and will also not switch off the connectivity," read the consent, which was adopted as a court order.

Mr Justice Muga Apondi said Essar was at liberty to reduce its sites depending on the services rendered by the private data supplier provided "they have notified KDN on the changes".

KDN moved to court on May 25 seeking orders to compel Essar Telkom to clear a long-standing debt of Sh133 million or risk being switched off its connectivity.