The Communications Authority of Kenya defended itself against accusations it sold Jamii Telecom a 4G licence worth KES2.5 billion ($24 million) for KES100,000 and failed to charge the operator another KES2.5 billion in fees, The Standard reported.
Following media reports in the Daily Nation on 11 May, the regulator held a press conference where it maintained “no money had been lost” and Jamii Telecom was only issued a year-long trial licence.
At the event Communications Authority chairman Ngene Gituku said he would not offer any further explanation until a special board meeting into the issue had taken place.
In a newspaper advertisement responding to the claims, under fire operator Jamii said it had paid all appropriate fees and the reports were a result of the country’s dominant wireless operators being “keen on protecting their monopolistic dominance”.
The Daily Nation earlier reported accusations the regulator had “gifted” a licence to the company.
According to the article, rival operators filed complaints with the regulator’s director general Francis Wangusi questioning the move and demanding an explanation as to why the 700MHz licence had not been auctioned.
Jamii Telecom is a communications operator in the country specialising in carrier infrastructure and corporate data transfer services.
In recent months, the Communications Authority conducted investigations exploring ways to increase competition in the telecoms and finance sectors, following the completion of a report by UK analyst house Analysys Mason on the issue.