Category Archives: kenya communications

Kenya telecommunication license bundle

The Communications Commission of Kenya has officially tendered the license for a second national telephone operator to compete with Telkom Kenya.

As promised by the Government, the license also included a national cellular license, which effectively kills off non-starting Econet who have been unable to get moving after three years (they will probably sue the Government unsuccessfully, further delaying the license)

The license includes: local voice & data access, national long distance voice & data access, national cellular mobile, international voice gateway, commercial VSAT and internet backbone.

Experienced telecommunication operators who have a proven annual turnover of $150 million and manage over 500,000 subscribers are invited to bid provided they will be 30% partnered with Kenyans. Deadline for applications is June 30 and the license will be awarded in January 2007.

Kenya multi-media technology park

A breakfast meeting was held today to discuss plans for a multi-media technology park to be located in Athi River / Kitengela area. This is one of the key milestones in the ICT policy, which was approved by the Cabinet, but is yet to be passed by Parliament.

The multi media park is to be modelled along the likes of Egypt’s Smart Village and Ebene in Mauritius. Microsoft has already signed up to be the first tenant of the park and has offered to assist in its design.

The first park may be hosted by the Export Processing Zone Authority on their 1,000 acres in Athi River. In addition to tax benefits, the zone already offers various benefits including, cheap rents, easily obtainable immigration permits for companies (guaranteed for general manger, technical manager, financial manager and 2 directors), connected with fibre optic cable, and guaranteed electricity supply from KPLC.

Athi River/Kitengela is close to Jomo Kenyatta International Airport and over 20,000 new housing units are being built in the area. Some major problems facing the area are water shortages and traffic congestion. But the traffic problems could be alleviated by the (soon) construction of dual carriageway road from Machakos to Nairobi and removal of the mlolongo weighbridge to a location further down Mombasa road.

Government
The Minister (Mutahi Kagwe) and permanent secretary (Bitange Ndemo) of Information & Communications are a dynamic pair whos’ vision is to make Kenya be known as an ICT destination, not just for tourism, politics, coffee, and tea. The two are very passionate about ICT and how the country and people can use ICT to achieve development and business goals.

Minister Kagwe also said

  • The government would set up an ICT board to market the country as an ICT destination (similar to the Kenya tourism board).
  • Confirmed the country would go it alone (& look for support elsewhere) on the EASSy submarine cable project if Kenyan demands for time, quality, and cost are not met. (SA is to blame for most delays)
  • Said the recent Kengen fundraising demonstrates the country has enough capital to meet its development needs, if channelled properly.
  • Called on media to hype business in Kenya, not endless political stories.
  • Called on the business community to be more assertive in challenging the government when they feel aggrieved.
  • Is convinced Kenya can put up a better park than Egypt
    and invited the private sector to also set up their own parks with the government giving incentives.
  • Said ICT products would be zero-rated in the upcoming budget in June 2006

Other bits

  • Rural Internet: Telkom Kenya will begin rolling out wireless CDMA this month with affordable units costing about $30. Also, the Communications Commission of Kenya (CCK) is willing to waive some licensing charges for companies that want to start rural ISP’s.
  • Business incubators: Incubator policy is expected to be passed by Parliament by the end of 2006.
  • Training: The Kenya College of Communications & Technology (KCCT) has been transferred from Telkom Kenya to the CCK to better serve the country’s ICT training needs.

Ecofade

According the People newspaper, Econet wireless has lost its case against the Government of Kenya – which is now free to source and re-advertise for a new third mobile operator for the country.

Meanwhile the other two operators, Celtel and Safaricom, have both applied to the CCK for licenses to provide and operate international gateway telecommunication systems and services. They are likely to begin after June 2006.

Another Saturday Post

Dedicated to AfroM who says I don’t work on weekends

Banking

The Nation gives a peek at a damning report on the over-staffed and under-performing employees at the Central Bank of Kenya.

Charterhouse Bank management denied that they were involved in money laundering and claimed that accusations were meant to distract from the problems at the Central Bank.

Auditors of the collapsed Trust Bank will be sued for fraud by the former depositors.

An IFC report on the Ugandan banking sector.

Ex-Im Trade
The Ministry of Trade & Industry has published a handbook on importing and exporting in Kenya.

Kenya Airways
– The airline is offering Mombasa residents cheap tickets to fill seats, likely to be empty over the Easter weekend. There are so many coast holiday packages between the airline and Mombasa hotels resulting in full flights, and probably requiring extra & larger aircraft, to Mombasa before Easter and from Mombasa after Easter. So the airline is selling seats for 2,500 shillings (about ½ price) to Nairobi before Easter and to Mombasa after Easter
– The airline also offers automatic 10% discounts for tickets booked through its website (bypassing travel agents & their commissions)
– KQ will codeshare with Korean Air on the Seoul – Bangkok – Nairobi route effective April 20. (From African Flyer)

E-govt
Parliament will unveil a new website next Thursday, minus 7 MP biographies.

Sports
ABM AMRO economists make predictions about the World Cup showing Brazil are likely to win, but an Italian win would be best for the world economy.

Mining
Tiomin will buy a 20% Net Profit Interest Royalty (“NPI Royalty”) that Pangea Goldfields holds on the mineral sands exploration licenses of Kwale, Kilifi, Vipingo, and Mambrui in Kenya.

Communications
The Communications Commission of Kenya (CCK) will simplify the licensing process by combining three different licenses: VSAT, internet backbone & gateway, and public data network operator (PDNO) & international data gateway into one data carrier network operator (DCNO).

Telkom now an ISP

Jambo Telkom, a subsidiary of Telkom has started offering internet connections as an internet service provider (ISP) and competing against other ISP’s like wananchi and Africa online.

Simple: All you need is a Telkom telephone line and a computer with a modem installed. Dial 9444 with your modem then enter the username jambo and password jambo and your are connected directly to the internet (at 56kps max). Charges are the normal local call rates.

Jambo was originally licensced in 2002 and at the time regulators assured other ISP’s that Jambo would not be subsidized by Telkom to drive them out of business.

Read about the long tortured history of ISP’s in Kenya here (DOC file).