State to remove foreign investment cap

3 Jan 2007

The Kenyan government is considering abolishing regulations which require telcos to have a minimum 30% local investment, opening the way for foreign firms to take complete control of Kenyan operators. A report from Nairobi newspaper The East African says that the Ministry of Communication has already drafted a document which proposes a more liberal regime for overseas investors. The move follows reports that the local shareholders of newly licensed second national operator Vtel are having difficulty raising their share of the company’s KES12 billion (USD169 million) licence fee. Problems with financial difficulties at local investors have also hampered the development of cellular licensee Econet Wireless.