The management of Telkom Kenya and the American Tower Corporation are once again expected to appear before members of Parliament to answer questions regarding a sale and lease agreements signed between the two companies.
This follows an invitation by the Senate Committee on Information, Communication and Technology over claims that Telkom Kenya had failed to honour a leaseback transaction it had signed with American Tower Corporation.
The committee chaired by Trans Nzoia Senator Allan Chesang, made the ruling after ATC Kenya informed members of the Committee that Telkom Kenya owes them a Sh4 billion debt over a telecommunications tower sale and leaseback transaction dating back to October 2018.
ATC argues that 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 chief executive officer Thomas Sonesson told the committee.
The telecommunications infrastructure provider was responding to comments made by ICT and digital economy cabinet secretary Eliud Owalo, who had earlier told the committee that American ATC Kenya had 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 investigate the matter and find a lasting solution.
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