Kenya: Yu, Airtel in Network Dispute


Two mobile phone operators are involved in a Sh1.9 billion network dispute. Airtel has threatened to switch off Essar Telcom's, popularly known as Yu, connectivity over the disputed amount. According to the court documents, Yu and Airtel entered into a Site Leasing Agreement on April 3 2009, in which Airtel leased certain sites to Yu.

Yu however claims that Airtel failed to meet the agreement which caused the former to start experiencing frequent site failures that disrupted its network and hampered the customer's ability to make calls, send sms and use data services. It also claims that it lost 34 batteries from the sites as a result of Airtels breach of the agreement to provide daily security at the sites.

Yu claims Sh1.9 billion against Airtel and Airtel is claiming Sh252 million from Yu. Yu intends to refer the matter to arbitration and has succeeded in getting an injunction restraining Airtel from switching off its connectivity or interfering with the company's equipment at Airtel's sites. The case will proceed on July 20 before High Court judge Daniel Musinga.