Mobile licensee still faces shareholder troubles

21 Sep 2006

A shareholder in Kenya’s third cellular licensee has called for the country’s telecoms regulator CCK to halt the planned award of mobile frequencies. The Kenya National Federation of Co-operatives (KNFC) – a local farmers group – is part of Econet Wireless Kenya Limited, a consortium which won a national GSM concession in 2003. Financial problems have, however, prevented KNFC from meeting its required investments in the cellco, and other shareholders, headed by Zimbabwe-based Econet Wireless, are now planning on pushing ahead without it. But the East African Standard reports that KNFC wants the regulator to block the frequency award; the group says it will be adversely affected if it is locked out of the benefits that could come from the launch of the mobile service.

Kenya, Essar Telecom Kenya (yu)