KENYAN GOVT CANCELS ECONET'S LICENCE AND SAYS IT WILL RE-TENDER
Information and Communications Minister Raphael Tuju addressed a press conference at CCK headquarters, where he announced that the Government had cancelled the licence for the third mobile telephone operator (Econet). The Government will refund the company's USD15 million. The Government will also refund USD15 million (Sh1.2 billion) licence fee formerly paid by the international partners of the consortium. Making the announcement, Information and Communications Minister Raphael Tuju, said the tender seeking the third mobile phone operator will be advertised afresh by the Communications Commission of Kenya. "After having studied the file and followed the paper trail on the matter of licensing, it has become apparent that the local partners are not able to raise the money that will enable them to hold shares that conform with the shareholding requirements as per the Government's policy for the sector," Mr Tuju said at the CCK headquarters in Nairobi.
Econet Wireless Consortium was supposed to raise USD27 million (Sh2.2 billion) as licence fee, but has only managed to raise Sh1.2 billion (USD15 million), leaving a shortfall of Sh1 billion (USD12 million).