CCK rejects appeals to cut monthly licence fees early

1 Feb 2012

Kenya’s telecoms operators will continue paying their monthly licence fees at the current rate until July 2012, the Communications Commission of Kenya’s (CCK) board has confirmed. Last year the regulator lowered monthly licence fees by 41% and the annual operating fee from 0.5% to 0.45% of gross annual turnover, but stipulated that the new rates would not actually apply until 1 July 2012. Kenyan daily The Nation reports that the decision to preserve the original timeline was made during a CCK board meeting, with the watchdog’s representatives voting decisively against having the fees reduced with immediate effect. Acting director general Francis Wangusi commented: ‘The CCK board has declined the appeal by telecommunication companies since it risks crippling the organisation’s operations by cutting a significant part of its revenue. The board was convinced that there are no major reasons to call for such a radical decision. They will enjoy subsidised rates when we invoice them in July’. It is believed that Information Permanent Secretary Bitange Ndemo sided with the operators, after coming under pressure from the country’s leading telcos, with Ndemo blaming the CCK for ‘halting an already late decision’.