Kenya’s second largest telecommunication firm, Airtel can heave a sigh of relief after High Court quashed Communications Authority of Kenya’s demand of Sh2 billion as renewal license fee from the firm.
Airtel moved to court to challenge CA over its move to demand the fee before renewal of its license.
High Court Judge George Odunga issued orders in the suit on Monday restricting the regulator, its agents, employees from taking any steps, actions or measures to enforce its decision of demanding the money from Airtel.
“It is therefore my view that the respondent’s decision to demand the applicant pays Sh2billion within 14 days from the date of demand for the zeal of meeting annual tax targets, is not such an overriding interest from the reasons set out in the judgment to justify its failure,” read the ruling by the judge according to the Star.
CA was directed by the court t issue Airtel with a license without further delays.
Airtel through lawyer Fred Ngatia accused CA of dishonoring a pact with Airtel that led to purchase of Yu Mobile by demanding $20.025 million (Sh2.06 billion) in spectrum fees after the acquisition.
Airtel said the regulator had agreed to merge its operating licenses with the ones it purchased from Yu Mobile in 2014 for the $6.976 million (Sh718 million)-total sum paid to acquire the firm. The license was therefore, supposed to expire on January 27, 2025.
However, said the CA changed heart and demanded that the fee is supposed to be paid upfront before a license is issued.
Judge Odunga ruled that it was wrong for the CA, a public body to turnaround on an earlier agreed deal with Airtel without informing it which took away its objectivity and fairness in handling the issue.
“It was wrong for CA to make an about-turn from its earlier decision without informing Airtel. The court has to frown from that action,” stated the Judge.
Odunga ordered the CA to complete negotiations with Airtel in its bid to acquire the new license.