France Telecom seeking payment from Kenyan government

13 Apr 2010

According to local press reports, the first phase of negotiations over the KES28.9 billion (USD385 million) claim which France Telecom (FT) has submitted to the Kenyan government has ended amid secrecy. The French company is demanding the payment following complaints about Kenya’s competitive environment and a scathing attack on the market dominance enjoyed by rival operator Safaricom. Sources familiar with the negotiations told The EastAfrican newspaper that in addition to the original USD385 million claim, FT has lodged an additional claim of USD300 million on the grounds that Telkom Kenya’s former management concluded a deal with equipment supplier Rapid Communications weeks before the French took over, thereby denying FT a chance to negotiate a deal under whose terms it would inherit future debts.

Kenya, Orange Group, Safaricom, Telkom Kenya