Francis Wangusi, Director-General Communications Authority of Kenya.
The Communications Authority of Kenya (CA) has recently stated in its Kenya Information and Communications (Universal Access and Service) regulation 2015, that companies must pay 1 percent of their gross revenue towards the Universal Service Fund.
“A universal service provider that is found to be in contravention of these regulations shall be liable to a penalty of up to a maximum of zero decimal two per centum of the annual gross turnover of the licensee for the previous year or to imprisonment for a term not exceeding three years, or to both,” the regulations states.
Already, leading companies such as Safaricom, Airtel and Telkom Kenya have been paying 0.5 per cent of their gross revenue towards the fund. However, CA Director-General Francis Wangusi says the contributions were moving at a snail’s pace. Meanwhile, the regulator has locked Telcos out of the management of a key ICT fund, even as it doubles the contribution to boost connectivity in remote areas.
Canadian firm Intelecon Research and Consultancy Ltd, the firm hired by the CA to conduct a study on application of the fund, noted that operators have only contributed Sh2.9 billion against the Sh100 billion target. The fund will play a key role in subsidising the cost of ICT infrastructure roll out and expansion in remote areas.
The operators through their lobby group, Technology Service Providers Association of Kenya (Tespok), and the ICT Ministry, in March agreed that the law would be amended to allow them to participate in the management of the fund by December.
Former ICT Cabinet Secretary Matiang’I said “I am in communication with the Attorney-General’s office in regard to amendment of the law that will pave the way for inclusion of operators in the Universal Service Advisory Council before end of December”.
