KICA Amendments: Control of anti-competitive practices by telecommunication operators

I think as the business and the sector matures separation will be key.
Convergence also makes it hard to measure the digital economy from a
product or service perspective.


On Thu, 24 Oct 2019, 11:51 pm Mwendwa Kivuva, <>

> Thanks Barrack.
> To your question, the main aim of this bill as indicated in the document
> is to “aid in the control of anti-competitive practices by large
> telecommunication industries in the sector.”
> Just for context, I saw the acting CEO of Safaricom in the news today
> challenging the dominance and competition issue.
> He said that Safaricom’s other main non-telecommunication business,
> M-pesa, could never have been successful without being bundled with voice
> and data. He said that the first 5 years of M-pesa was never successful. It
> was subsidized by voice and data. He also said he does not see the point of
> separating M-pesa to punish Safaricom for investing heavily to make the
> business successful.
> On Thursday, 24 October 2019, Barrack Otieno <>
> wrote:
>> Dear Kivuva,
>> I am confused on this one though it makes sense to distill the components
>> of converged networks. In a way, it will provide better premises for
>> measuring the digital economy. I am ok with this clause. It needs further
>> clarity and meat.
>> Regards
>> Regards
>> On Thu, 24 Oct 2019, 9:32 am Mwendwa Kivuva via kictanet, <
>>> wrote:
>>> This is a continuation of the debate to amend the Kenya Information and
>>> Communications Act (KICA).
>>> Comments and thoughts are welcomed for yesterday’s debate moderated by
>>> Mercy Mutemi on the regulation of social media and blogging. We can
>>> continue contributing through that thread.
>>> Today, we discuss the amendments to KCIA published on March 15th, 2019,
>>> recommended by Hon Elisha Odhiambo, MP, seeking to add a new section 25A on
>>> splitting telecommunications businesses, and section 34A on the
>>> compensation of telecommunications consumers on call drops, and section 84J
>>> prescribing how the Universal Service Fund (USF) should be used.
>>> *The new Section 25A requires telecommunications operators to*
>>> – Obtain a license for additional business.
>>> – Legally split the telecommunications business from additional business.
>>> – Provide separate accounts and reports in respect of all business
>>> carried out.
>>> – Require Communications Authority to report compliance annually to
>>> Parliament.
>>> The reasons given for this bill are to allow telecommunications
>>> companies to engage in other businesses, and also aid in the control of
>>> anti-competitive practices by large industries in the sector.
>>> What are your thoughts on this amendment? Do we have any specific
>>> recommendations we can pass to Parliament through the public participation
>>> process?
>>> Warm Regard
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