- The company had been fighting a legal battle for the last seven-year with the Communications Authority of Kenya (CAK) over its expired licence.
- Finally an out-of-court settlement has been reached between the two parties by which Airtel will pay 2 billion shillings over the next two years for its expired licence enabling it to be an operator in Kenya.
Airtel Kenya, the second-largest mobile phone operator in Kenya is fully owned by India’s Bharti Airtel. The company had been fighting a legal battle for the last seven-year with the Communications Authority of Kenya (CAK) over its expired licence. Finally an out-of-court settlement has been reached between the two parties by which Airtel will pay 2 billion shillings over the next two years for its expired licence enabling it to be an operator in Kenya.
The instalments of the payment is expected to start immediately. The payment will also make it possible for the firm to seek an exemption from a rule that requires local shareholders to own at least a 30 percent stake in telecom companies by March 2024.The licensing row was escalated when the government insisted that Airtel Kenya must first renew its licence before discussing the waiver of the local ownership rule. The stand by the government forced Airtel to retreat from the legal fight. The consent will be filed in court to withdraw the suit once Airtel starts the instalment payment.
After its licence expired in 2015, Airtel Kenya has been operating on that of yuMobile a company acquired in 2014. But that will also expire in 2025.
