Telecom firms to manage Sh2.5bn kitty by December

Corporate News

Telecommunication Service Providers Association of Kenya (Tespok) chief executive officer Fiona Asonga. PHOTO | SALATON NJAU 

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

Telecommunication operators will be included in the management of a Sh2.5 billion fund established to support infrastructure in remote areas before the end of the year.

This follows an agreement between the operators through their lobby group, Telecommunication Service Providers Association of Kenya (Tespok), and the ICT ministry Tuesday.

Tespok last week made fresh demands to be included in the management of the fund, days after its members surpassed the Sh2.5 billion target that had been set by Communications Authority of Kenya (CA) by Sh900 million.

Dubbed Universal Service Fund (USF), it is under the CA, and managed by the Universal Service Advisory Council (USAC) which the operators have been pushing to be reconstituted to accommodate them.

ICT secretary Fred Matiang’i said his ministry had sought legal advice to amend the law that would see private sector operators included in the management of the fund.

“I fully support the participation of the sector in the USAC. However, their inclusion must be in accordance with the law. I am in communication with the Attorney-General’s office in regard to amendment of the law that will pave way for their inclusion before end of December,” Dr Matiang’i said. 

“Whereas USAC has been established, activities of the council that will facilitate the engagement will require an amendment in the law to ensure that the industry stakeholders play a role in line with global best practice on management of the fund,” said Tespok CEO Fiona Asonga. 

The telcos started contributing 0.5 per cent of their revenue in July, but the kitty is currently being exclusively administered by government officials.

Ms Asonga, however, said there is need for a new access gap study to identify areas that the fund aims to address.

Tespok said it will continue to engage the ICT ministry and USAC on key measures that need to be put in place to ensure the deployment of the fund remains relevant both to the underserved areas and the private sector investors and partners.