Telkom Kenya is likely to lose its operating license after the Communications Authority of Kenya (CA) revealed that the company has a huge debt burden amounting to Kshs. 9.4 billion as of today. Ezra Chiloba, CEO of the Communications Authority, released this shocking piece of information during a joint committee of Parliament, where he pointed out that thousands of Telkom’s employees could lose their jobs after the government threatened to withdraw the firm’s license owing to the company’s unsustainability.
Mr. Chiloba noted there are a number of regulatory issues that the Government is concerned about in this particular sector. These issues would need to be addressed before renewing any firm’s license. The CA boss stated that Telkom’s debt was too high and that when they wrote to the company in December of 2021, the debt stood at Kshs 7.2 billion which has since escalated to Kshs. 9.4 billion as of today.
In addition to the government’s stand on the matter, Chiloba stated that some of the company’s service providers, like American Tower that leases broadcast towers to Telkom Kenya, are likely to pull out their services very soon. Such a move will mean that Telkom Kenya customers will no longer receive their services forcing the company to shut down.
Read: Government Acquires Full Ownership Of Telkom Kenya
The Chair of the board for Telkom Kenya, through Gideon Kimaiyo the MP Keiyo South, revealed that there were already plans to sell all shares held by Jamhuri Holdings and the government of Kenya to another entity.
Telkom Kenya customers are now worried by the state of the company, as they fear not receiving services should the company shut down. Furthermore, the employees of the company have their fingers crossed as they look forward to any possible solution before the government withdraws their operating license due to the high debt.
