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Diasporan Investors Team Up to Buy Ghana Telecom
by Mike Theuri 17 Jul '07

17 Jul '07

It is noteworthy to see the GoK rush to sell a controlling stake in Telkom Kenya to foreigners while indigenous Ghanians battle to secure a stake in Ghana Telecom: http://allafrica.com/stories/200707161541.html Diasporan Investors Team Up to Buy GT Public Agenda (Accra) NEWS 16 July 2007 Posted to the web 16 July 2007 Accra A Ghanaian Diaspora professional group, called the Ghana Leadership Union (GLU) has announced plans to pool resources to buy a controlling stake in one of the country's biggest assets, Ghana Telecom. GLU, a non-partisan NGO with membership based in the U.S.A, U.K., the E.U., Australia and Asia, says Ghanaian professionals based aboard have been shut out of the process of participating in the investment and management of divested State Owned Enterprises for too long; hence the decision to join the race for GT. In furtherance of that, GLU has created a novel investment framework to attract financial and human capital to formally express interest in the acquisition of a controlling stake in Ghana Telecom Ltd. In a statement copied to Public Agenda, the President of GLU, Dr. Kwaku A. Danso, stated, "the founders of our nation Ghana did not use taxpayers' funds to set up State-owned enterprises (SOEs) only to be sold to foreigners, or to insiders of the government who use proxies to buy these SoE's and leave the real stakeholders with the debts. This practice must be stopped, by any means necessary". The statement said the GLU members are seasoned professionals with more than 20 years of telecommunications and information systems management and will bring investment capital in excess of US$500M to this venture. This unprecedented investment approach facilitated by the GLU will also enable the participation of accredited investors within Ghana and abroad with as little as $1,000 per unit. Asked about the investment strategy, the initiative's lead promoter in the UK, lawyer George Asomaning responded, "It is our intention to ensure that as much of the actual investment received gets channeled into the infrastructural development of Ghana Telecom, so as to position the company to deliver on its promise and to return a sizeable profit for the shareholders, the citizens of Ghana". Nifa Bankroh, the organizer of the "Lets buy Ghana Telecom" initiative stated, "If Ghanaians do not get involved in the acquisition, ownership and management of significant state owned enterprises that are being divested, the likelihood of Ghanaian nationals being able to control the factors that affect their economic future will be marginal at best, and probably negligible. Many Ghanaian businessmen and professional groups are of the opinion that conditions imposed by so-called development partners or financiers, opening Ghana's markets to so-called globalization, has not proven economically beneficial over the last three decades. Professor Mintzberg of Canada has described globalization with respect to development as "a sham". Whilst foreign investors and competition are necessary and welcome tools in Ghana, this global inequity, coupled with a comparative lack of openness and transparency has led to an unequal playing field in the world of business dealings and negotiations. The result is the massive brain drain, high accumulated debt burden, and high unemployment and underemployment in Ghana, which call for new development strategies. Commenting on the sale of state-owned enterprises and the ongoing telecoms divestiture process, Michel Bowman-Amuah, an ICT entrepreneur resident in the United States,Stated that; "there are certain strategic national assets that must be safeguarded and placed above the drive for investment capital and chief among those is our national information and communications infrastructure. There has to be more regulatory oversight into corporate takeovers, mergers or acquisitions of these strategic national assets, if we are to maintain our sovereignty and protect our security interests". Industry watchers say, Ghana's wireless phone networks are dominated by foreign- owned and controlled entities that were granted these franchises at a fraction of prevailing market rates, creating a very lopsided playing field which places the fixed network carriers at a significant competitive disadvantage. Recently, the largest operator (by subscriber base), Spacefon™ /Scancom™ was acquired in a multi-billion dollar transaction by Areeba™, another foreign concern without as much as public hearings into the process and we the general public are yet to be briefed about the details or benefits that the citizens of Ghana have realized in this sale. The above transaction has been clouded by a shareholder proxy battle between the Lebanese operators of Scancom™ and the Ghanaian founder of Spacefon™, who was allegedly forced out with political support of the previous administration. Though the matter is pending in the courts, the government administration and regulatory agency, the National Communication Agency (NCA), has been eerily silent on the matter which begs the question about what investment protections exist for indigenous investors within Ghana's corporate regulatory system. Also recently, the Government of Ghana settled a shareholder dispute with the former minority shareholder in Ghana Telecom, Telecom Malaysia, who had purchased the rights to increase their shareholding to a controlling stake, but were unceremoniously expelled when the current administration assumed power in 2001. This dispute has shaken foreign investor confidence in the long term viability of the divestiture process and its stability. Investors need to be certain that their multi million dollar investments are secure regardless of ruling regime. It must be noted that a Ghanaian-owned and controlled investor group is no different and would require that specific safeguards are in place to protect the interests of their shareholders. It is envisioned that this investment framework created by the GLU shall be reused by other industry sector professionals as other State owned enterprises are divested by the Government of Ghana in the near future. "It is our intent to safeguard the national interest by facilitating the participation of Ghanaians everywhere in the Nation-building process." Mama Brenya Twumasi, a legal scholar and interested investor with many years of stock ownership experience writing from San Antonio, Texas, warned that "our nation cannot continue to ignore the views of the people, and that in essence, governmental transparency and accountability is a must in all present and future dealings if we, as a Nation State, wish to beviewed as credible by our allies and other Sovereign States." It is the general agreement of most Ghanaians surveyed on the issue that Ghana has too many skilled, experienced and competent Ghanaian professionals, educated as part of the initial plan of Ghana's first President, who are willing and able to own and manage our strategic assets. It is therefore unconscionable to simply stand by while foreign corporate raiders are ushered in on the red carpet and given the keys to our National treasure troves.

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why amend instead of a new Act??
by Rebecca Wanjiku 16 Jul '07

16 Jul '07

Am sure people are expecting a convoluted reason as to why the AG decided amend KCA (98) instead of coming up with a brand new Act. Well, dont wait for a huge explanation, its simple- the AG just thought it was easier to amend instead of coming up with a new Act that may be changed or be altered by insertion of new issues including typing errors. At least that is what we were told at the stakeholders meeting. For George Kegoro, ICJ-K head, the present bill is terribly confusing for lawyers and parliamentarians. Kegoro felt that it would have been procedurally easier in terms of practice to bring a brand new statute (through an original Act). He added that the government can be accused of lack of good faith in this case because it could have been done better. Tel. 254 720 318 925 blog:http://beckyit.blogspot.com/ --------------------------------- Be a better Globetrotter. Get better travel answers from someone who knows. Yahoo! Answers - Check it out.

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at the stakeholder workshop
by Rebecca Wanjiku 16 Jul '07

16 Jul '07

faced with growing criticism, the ministry of information and communication is meeting stakeholders at Safaripark hotel to get their views on the proposed bill. here are some highlights of the bill.... a general overview of what ICJ elaborated. One, as drafted the Bill seeks to converge all sectors of communication (broadcasting, telecommunications and information technologies/internet) under one regulatory body i.e. the Communications Commission of Kenya (CCK) and thus, purportedly, streamline the licensing procedures and management of frequency spectrum, through numerous fundamental amendments to an existing principal Act and other incidental laws. At a glance, this style of law making is clumsy, without precedent in Kenya and indeed the whole Commonwealth. It is the form of law making process that will most likely convolute issues and end up with bad law. Would it not have been tidier to come up with a new law that retains all the required provisions and repeals the existing law? Since the principal Act, the Kenya Communications Act, 1998, is merely a skeletal legislation that only establishes the CCK, provides for licensing and regulation of telecommunications services, radio communications and postal Services, it is difficult to comprehend the wisdom of using it as the building block towards a law that will incorporate all aspects of broadcasting and information technology. Again whether having a converged regulatory regime is the most ideal situation or having separate regulatory frameworks for the various communication sectors is to be preferred is a big question and one not easy to resolve without elaborate and structured consultations with all stakeholders and consumers of information i.e. the general population. Tel. 254 720 318 925 blog:http://beckyit.blogspot.com/ --------------------------------- Looking for a deal? Find great prices on flights and hotels with Yahoo! FareChase.

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Re: [kictanet] [SPAM] [Skunkworks] Telkom Kenya is not this cheap sign petition.........
by Mike Theuri 16 Jul '07

16 Jul '07

Jean, I appreciate your response. I would hope that more Kenyans would participate in constructive debates over matters of national importance particularly those that affect them and future generations of Kenyans. It does not take rocket science to figuratively determine why TKL which in the past charged some of the highest tariffs in the world has not made a profit. To date no one has been prosecuted and ultimately convicted for pilfering public funds generated by this very viable corporation. TKL represents a classic example of gross mismanagement, attempts to turn around the corporation have encountered several avoidable obstacles and the status quo has remained. In contrast other publicly owned corporations such as KCB have been turned around and turned into very profitable entities without being sold to alien companies while transitioning to minimal governmental ownership and ensuring maximum equity participation by the Kenyan public. One must wonder if this cheap sale is intended to clean the slate of the years of pilferage and mismanagement while conducting a well though out public relations exercise to show that the current administration is engaged in doing something "good for the country" as opposed to doing something good for foreigners. TKL has turned around a corner and has revamped its infrastructure at great expense. Several exchanges have been upgraded and digitized and so has its domestic digital network. It has retrenched the unnecessary and redundant workers who were a drag on its ability to be profitable (again paid for by the Kenyan taxpayer). Just when TKL is on its home stretch to launching several new and revolutionary services, there is a sudden and urgent need to dispose of it to foreigners or combat it by companies that have been making millions of dollars from Kenyans (read foreign companies). Can these companies explain how they may have acquired 3G frequencies from the regulator without paying a cent when similar frequencies have been sold in other African countries for hundreds of millions of dollars? Can the Exchequer let the Kenyan public know the amount that it received from the companies that are now complaining about TKL's new services in return for this finite 3G public resource that should not be handed out for free ? When were licenses for 3G technology publicly tendered for in Kenya ? Is it a good thing for Kenya that the exchequer be deprived of much needed revenue? If TKL is not viable why are these competitors complaining? Indeed it was patriotism that was the foundation of my comments but not the single one driving factor. The government is by the people for the people. The people here happen to be Kenyan taxpayers and voters. What is unpatriotic or misguided about asking for accountability as to why a corporation that is publicly owned is being sold for pennies on the dollar ? or asking that prosecutions be undertaken for those guilty of the prior pilferage of public funds from the same corporation? There is nothing absolutely misguided about questioning why the government appears to have disregarded national security and the public's interest in attempting to sell TKL. I'm certain that if the decision to sell TKL under the current status quo to foreigners were put to a public referendum, that it would be soundly defeated. Below is an article that sums up the concerns of many Kenyans who have come to know about the illusionary effect of corporations that are Kenyan by name but foreign in all other aspects. Contrary to what many belief, Kenya's wealth is in the hands of foreigners and the attempt to sell TKL is another step in the same direction. The best that could happen would be to follow the KQ model of privitisation which some are advocating and which has ensured that the ordinary Kenyan has an opportunity to benefit, no matter how small from the millions of dollars in profits generated in profits and without forgetting to correct the harm cause by those guilty of the pilferage of public funds and revenue. The government's intentions may be noble but those in Government must not forget that they are in the government for and on behalf of Kenyans who have entrusted them with the public's wealth. Thus Kenyans must come first before foreigners, after all it is their country and their corporation that is at stake. Mike http://www.eastandard.net/archives/sunday/hm_news/news.php?articleid=18216 Kenya's wealth in foreign hands By Kamau Ngotho The bulk of Kenya's wealth is in foreign hands, according to statistics obtained exclusively by The Sunday Standard. If Kenya were a cake to be shared out, Kenyans would only lay claim to 31 per cent of the country's total wealth. The rest would go to foreigners. Agriculture, tourism and banking, which combined bring in the country's largest earnings, are in foreign hands. Last year, tea, tourism, flowers and coffee earned the country Sh140 billion, nearly half of the annual national budget. Of this money, only 31 per cent ended up in the country — as tax and real earnings to the nationals. And shareholding in the richest 20 companies that trade at the Nairobi Stock Exchange is foreign. The skewed distribution of wealth between foreigners and Kenyans puts paid to all efforts since independence to hand control of the country to its citizens. Tea growing, which earned the country Sh43.5 billion last year, is concentrated in the hands of six leading agricultural companies whose shareholding is largely foreign. Up to 78 per cent of earnings from tea went, therefore, to foreigners — leaving the balance for Kenyans. The Big Six in the tea sector are Unilever Tea Kenya, Kakuzi Ltd, Williamson Tea Company, Kapchorua Tea, Limuru Tea Company and Sasini Coffee and Tea. The British-owned Brooke Bond Group holds 43.1 million shares of the total 48.8 million shares issued in Univeler Tea Kenya. The same group owns 54 per cent of the total 3.9 million shares issued in Limuru Tea Company. In Kakuzi Ltd, foreigners have a total shareholding of 68.3 per cent of the total 19.6 million shares issued. They hold the shares through Bordure Ltd and Lintak Investment Ltd, with 35.1 and 33.2 per cent shareholding, respectively. Britain's Williamson family has a controlling majority shareholding in both Williamson Tea and Kapchorua Tea companies. In Williamson Tea, it holds 67.2per cent of the total 8.8 million shares issued through their company, Ngong Tea Holding PLC. In Kapchorua tea, they hold 40 per cent of the 3.9 million shares issued. Sasini Tea and Coffee Ltd is 87.3 per cent owned by business magnate Naushad Merali, a Kenyan. Merali's companies hold his shares in these businesses: Legend Investments Ltd (51.7 per cent), East African Batteries (18.7 per cent), Yana Towers (15.9 per cent) and Swan Estates (1.04 per cent). The reinvigorated tourism sector, which earned Sh42 billion last year, is also foreign-owned. And just as the Sh43.5 billion earnings from tea sector ended up in foreign pockets, so did the Sh42 billion that came from tourism. Tourism earnings went into three directions: Hotels, airlines, and travel/booking agents, in that order. Of Kenya's 290,000-plus tourist hotel bed spaces, foreign hoteliers own 74.3 per cent of it. Tour flights to Kenya are entirely in the hands of foreign airlines. It is all the more foreign-dominated in the traditional tourist peak periods of Easter and Christmas, when there are no scheduled flights to Kenya's tourist hub of Mombasa. During the two seasons, tourists arrive in Mombasa in chartered jets arranged by European tour operators. Foreign companies stationed in European and American capitals also entirely control hotel bookings and transfers. Where internal travel is concerned, foreigners too, dominate by owning 7 of the 11 leading local tour travel firms. At the end of the day, tourism in Kenya remains a foreigners' enclave with indigenous Kenyans left to scratch the surface on petty trades like selling curios and prostitution. After years of lobbying, last year the European Union set aside Sh250 million to economically empower indigenous Kenyans to get a fair share of the lucrative industry. Seven projects were targeted to tilt the balance in a programme called Tourism Diversification and Empowerment Project. But a spokesman at the Nairobi EU office said the money is yet to be released as project proposals submitted are still under evaluation. The only hotel chain listed on the Nairobi Stock Exchange is the TPS Serena. The Aga Khan Fund for Economic Development holds the company's majority shareholding through its company, TPS Holdings Limited. Horticulture, which earned Kenya Sh28.2 billion last year, is the country's third largest foreign exchange earner. It, too, is a foreigners' affair. Indigenous Kenyans mainly come in as casual labourers on the flower farms. Of the 44 certified companies dealing with horticulture products, 26 are foreign-owned. But an even bigger irony is that the leading 10 players in the industry — all foreign-owned — bag 83 per cent of the total income from the sector. Flower farming (floriculture) is the key plank in Kenya's agriculture sector. Seventy six per cent of Kenya's total flower production is concentrated in foreign-owned flowers farms around the Naivasha area. The big three are Homegrown, Sulmac and Oserian. Late last year, Kenya overtook Israel and Columbia as leading exporters of cut flowers. But you would not know that from the world's leading flower auctions in Amsterdam and London. Why? Foreign flower exporters in Kenya have registered their companies abroad — mainly in Amsterdam — and sell flowers they have grown in Kenya under a foreign label. In that case, while flowers from a local company are sold in Amsterdam as flowers from Kenya, Dutch companies growing their flowers in Naivasha sell theirs as flowers from Holland. The consequence of it is that flowers owned by Dutch companies receive preferential treatment at the auction, including exemption from the strict EU- imposed export rules. Flower auctions in Amsterdam and London account for 65 and 25 per cent of Kenya flower sales respectively. Of the approximate 60,000 tonnes of flowers exported from Kenya last year, 37,000 tonnes were sold in Amsterdam and London auctions as flowers from Holland. The statistics can make it look like the entire flower industry in Kenya is one big conspiracy against indigenous people. Foreign air charters, the only ones used in flower transport, charge the highest rates in Nairobi. Freight charges on flowers from Kenya are twice those in the capitals of Kenya's nearest competitors Israel, Columbia and Costa Rica. There are also 40 to 45 per cent higher than in Egypt and South Africa, Kenya's two biggest competitors on the continent. At $400 a day, inspection and storage charges at Jomo Kenyatta International Airport are the highest in the world. So is the freight charge of $1.85-$2.2 per stem. Flowers sold in Kenya's name are inspected stem by stem at the JKIA at the cost of 12 Euro cents a stem. Those grown in Kenya but marketed by overseas- accredited companies are only inspected in bulk. On average, it costs upwards of $1 million to set up a typical flower farm on a half acre spread , which in turn brings in a $50,000 a year. Kenya's fourth leading export earner, coffee, is equally depressing on the ownership scale. The majority of small-scale coffee growers in Kenya sell coffee raw from the farm, earning less than 10 per cent of what the finished end product earns in foreign markets and in a foreign label. Though touted as an agricultural country, the other large-scale agricultural activities in Kenya are also foreign-owned. Rea-Vipingo Plantations, which deals mainly in sisal and dairy farming is 77 per cent owned by the Robinson family of England. They hold the shares through REA Holdings PLC, Unibuckle Holdings Ltd and REA Trading Ltd. Del Monte, world famous for pineapple products, is entirely a French affair and sells its products with the label "Made-in-France". The question of who owns Kenya's wealth sticks out like a sore thumb in the banking sector. The leading two banks with a combined market share of 71.4per cent are Barclays Bank of Kenya and the Standard Chartered. They are foreign-owned. Barclays Bank plc of London owns 68 per cent stake in Barclays Bank of Kenya. Standard Bank Africa, a London outfit, in turn owns 81 per cent shareholding in Standard Chartered Bank. To avoid domination by foreign banks, Nigeria and South Africa enacted laws on percentages of shareholding a foreign bank could own. Foreign ownership is also the same cord that runs through key blue chip companies listed on the Nairobi Stock Exchange. At the East African Breweries, British-owned Guinness plc holds 63.5 per cent of the total equity, leaving Kenyans to scramble for the rest. Guinness shares are held in the names of Diageo Kenya Ltd and Diageo Netherlands B.V. In the Nation Media Group, the Aga Khan holds 28.2 million shares of the 35.6 million shares issued. The Aga Khan's shares are held in the names of the Aga Khan Fund for Economic Development and Amin Nanji Juma. In Kenya Airways, Dutch company, KLM, holds 40.6 per cent equity. In Total Kenya Ltd, French companies Total Outre-mer and Elf Oil Kenya Ltd, own 77 per cent of the total shareholding, while in BAT Kenya Ltd, Molensteegh Investment BV of London, holds 68 per cent of the total shareholding. The question of who owns Kenya's wealth generated a national debate in 1968 when the National Council of Churches of Kenya published a paper entitled: "Who Owns Kenya's Industry?" In the paper, the late Anglican Bishop, the Rev Henry Okullu, regretted that five years into independence, "the compass needle had not moved in the direction of indigenous ownership of Kenya's wealth." Thirty-seven years later, the Rev Okullu would turn in his grave to note that the needle has drifted even further away. On 7/11/07, Jean-Antoine BORD <ja_bord(a)yahoo.fr > wrote: > > Hi, > > > > With due respect, I am not convinced that you asked all the good > questions. > > > > To what I have heard so far, Telekom has succeeded neither commercially > nor technically in the few past years. A significant part of its > infrastructure is considered obsolete if not out of order. I heard many > times that the service was quite poor and that one should wait several years > to get a land line. Telkom seems to have given up long ago its leadership in > Kenya to cell phone operator and successful ISP like Access Kenya, KDN, etc. > So, in a certain way, because of possible debts or potential expenses which > do not appear in the asset sheet, the valuation of Telkom might be less than > its licences. > > > > When you consider the status of Telecom national historical operators in > other countries, you should first ask the government why Telekom Kenya has > so poorly achieved in the last 5 years. > > > > When a company decide to go for an IPO (particularly when this is a > government-owned company), the non-professional investors should have a > minimum insurance that the price is fair and the company is sustainable. > Here is a second question. > > > > Another issue is the transparency of the process. In many countries, > private companies backed by Venture Capital Funds ran in parallel an IPO and > a trade sale. For instance, Kelkoo, Skype, etc, have been acquired > respectively by Yahoo and eBay instead of going public, because it was more > interesting for the existing shareholders. So, an IPO is not always the best > way (many companies experienced a crash of their stock a short time after > their IPO; investors who could sell some stock where considered as thieves). > > > > > Last but not least, the service level in Kenya is still poor and to turn > Telkom Kenya into a company leading the progress of this industry (instead > of trying to slow down the competition) would probably have a better impact > on the economy (and what you call Telkom's shareholders) than the loss > inducted by the sale of 40% at a price you consider too low. > > > > Finally, Kenyan Government has demonstrated with the Safaricom deal (and > probably many others) that it is able to defend the best interest of all > Kenyans, so that one should not consider it is guilty without an equitable > judgement. > > > > I could have developed some more arguments, concerning the role paid by > Safaricom, Celtel (which are partially owned by foreigners) and many other > foreign owned companies which create wealth in Kenya, concerning > protectionism and its consequences, etc. > > > > In conclusion, the mail written by Mike seems biased by a misplaced > patriotism and many issues have not been considered. > > > > With Kind Regards, > > > > Jean > > > ------------------------------ > > *De :* skunkworks-bounces(a)my.co.ke [mailto: skunkworks-bounces(a)my.co.ke] *De > **la part de *Dorcas Muthoni > *Envoyé :* 10 July 2007 20:21 > *À : *skunkworks(a)my.co.ke > *Objet :* [SPAM] [Skunkworks] Telkom Kenya is not this cheap sign > petition......... > > > > http://www.petitionspot.com/signature/TELKOMKENYA > > ---------- Forwarded message ---------- >

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Updates on ICT Bill workshop?
by John Walubengo 16 Jul '07

16 Jul '07

anybody willing to blog about what transpired at the above workshop? or must we wait until tomorrow for probably some biased view of the events... walu. ____________________________________________________________________________________ Park yourself in front of a world of choices in alternative vehicles. Visit the Yahoo! Auto Green Center. http://autos.yahoo.com/green_center/

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Memorandum of Views ::attached::
by Alex Gakuru 15 Jul '07

15 Jul '07

[Following our meetings with Human Rights groups find attached views on the ICT Bill. -- AlexG] <excerpts> I hereby circulate the memorandum of views and initial draft critique in as far as the Bill as drafted threatens free expression and introduces really novel legal issues that have the potential of taking away constitutional rights. We had an urgent media stakeholders meeting on 12th July in which we discussed the Bill and were shocked by its implications. The ICT Bill comes in as the Kenya Communications (Amendment) Bill, 2007 - also a rather novel way of enacting a new law completely different from the original version. This particular amendment bill is very ambitious as it even amends other laws (including some constitutional issues!). This Bill has already been tabled in Parliament for 1st reading on 4th July and is speculated to go for second reading the week of 23rd - 27th July! Clearly there is need for more time for consultation on the Bill and the issues - kindly go through the Bills and raise more issues. Please read the critique and react ASAP - from the rooftops if possible! We need all pairs of eyes reading this Bill. (The Bill is also available on www.kenyalawreports.or.ke) There is a stakeholders forum to discuss the ICT Bill on Monday 16th July 2007 at the Safari Park Hotel convene by the PS and Ministry of Information. Kindly purpose to attend and raise issues of concern. Section 149 in the 2006 (repeated in Section 134 of published Bill 2007) is anti-FOI!!!! In relation to offences is there a jurisprudential reason to treat ICT offences differently and have them outside the penal code - forgery is forgery, fraud is fraud, theft is theft even with new technology. Are e-commerce offences different? The issues of recognition of electronic evidence are proposed to be addressed in the Evidence Act by the Bill - Offences should probably be addressed in the same way by amending the Penal code not writing ICT Offences part VIA. So far we have only been able to look at the provisions that relate to the regulator (CCK) media, broadcasting, free expression and free flow of information together with the legislative drafting issues. The Bill is largely concerned with licensing and regulations and it puts all issues of information and communication under one regulator. In our view this may not achieve the objectives of the Bill as far as enabling devt of ICT in Kenya and making as an ICT hub is concerned. One of the participants, Dr. Mary Muiruri also shared that the e-transactions law should be separate as is the case in countries that we need to compete with e.g. Singapore. The ICT Bill as is will not help us attract investors, BPOs - create jobs etc yet it seriously threatens broadcasters and freedom of media and expression for the people. (See FYI separate communications on this issue - so we don't appear to be fighting ICT devt in Kenya) Regulation of broadcasting media is allowed as the frequencies are a rare public good to be shared and broadcasting media is also more pervasive than print media - TVs and radios are in our sitting rooms but be that as it may and we support the regulation as should happen in a democratic society as per international standards the punishments and penalties for any breach must be proportional and not draconian - Loss of Broadcasting License and Seizure of equipment punishments and others in the Bill are far too much especially as the legal safeguards are weak and the independence of the all powerful CCK is questionable. A quasi judicial body like CCK cannot have as wide powers as the courts of law in meting out hefty punishments prescribed by the Bill. The Bill is really intent on creating crimes - is broadcasting uncomfortable content criminal? Putting together so many varied issues in one law not only makes the law hard to read but it mixes up principles and underpinning democratic ideals and international standards. In the case of the broadcasting there maybe need to have a separate broadcasting law and an amendment of the KBC Act to make it a proper public broadcaster with an independent board and editorial independence. We still need advise on other provisions of the Bill, so please help in this. Further if you are aware of any other critiques that have been done please share them. Something we also found interesting is the change of the Bill from the Original Version of the Communications Bill and The published Bill which has various far reaching provisions that are not found in the earlier Bill raising the question - why the draconian sections were introduced especially 129, 130 and 131. It is interesting and worrying that Minister in the Bill is very powerful and busy - as busy as the regulator. The Bill as we note in the memo threatens to bring back sedition law days. <ends> ____________________________________________________________________________________ Boardwalk for $500? In 2007? Ha! Play Monopoly Here and Now (it's updated for today's economy) at Yahoo! Games. http://get.games.yahoo.com/proddesc?gamekey=monopolyherenow

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[Fwd: [DigAfrica] Telkom Kenya’s wireless service is really ‘mobile service’ for tax purposes]
by alice 15 Jul '07

15 Jul '07

Mobile companies complain that Telkom Kenya's wireless service is really `mobile service' for tax purposes The reverberations of Telkom's official launch of its wireless service last week has resurrected a growing dispute within the telecommunications industry. The war of words between telephone operators intensified this week as Celtel once again appealed for clarification on the role of the national operator, saying Telkom's recently launched wireless service is acting in direct competition with its own. "All we ask for is fair play," said David Murray, Celtel's CEO. "Telkom Wireless is a mobile service and should be treated as such." The launch of Telkom Wireless has brewed dissent amongst mobile telephone players who are protesting against what they term unfair business practice. Both Safaricom and Celtel have appealed to the industry regulator, the Communications Commission of Kenya (CCK), to clarify Telkom's status. The firms say the national fixed line operator is now acting like a mobile service provider and has not paid for a license to operate. "It is a clear contravention of the regulations. They have a competitive advantage over us," said Michael Joseph, Safaricom's CEO. Celtel has now asked that Telkom either pay for a license to offer wireless services or be charged taxes like other mobile operators. Currently, mobile operators are taxed 16 per cent VAT and 10 per cent excise while Telkom just pays VAT. Mobile companies say they would be able to pass on lower calling costs to consumers if the taxes were lowered. But a fierce lobbying campaign started late last year by both providers failed to induce the government to reduce or remove the excise tax in this year's budget. The mobile players hope to meet the Minister of Finance to revisit the tax issue and to ask for definitive action to be taken on Telkom's status. The industry regulator has said that Telkom is merely leveraging existing technology to launch its wireless service, which it maintains is still a `fixed' telephony product. CCK's Director-General has maintained Telkom Wireless is the natural evolution of the national operator's fixed line service and is the result of the operator upgrading its equipment. "CDMA will fuel the growth of this industry. Telkom is merely upgrading its Instafon service, which was fixed line service, to the CDMA platform, which is wireless product," said CCK's John Waweru. 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Top 10 mobile Markets in Mid-East and Africa: Kenya knocks out Tunisia
by alice 15 Jul '07

15 Jul '07

Top 10 mobile Markets in Mid-East and Africa: Kenya knocks out Tunisia Tunisia has been in and out of the ranking of the top 10 MEA markets by customer base over the past year. It was pushed out by Iraq in Q2 2006, only to be reinstated three months later as Kenya failed to register any growth as a result of mass disconnections by Celtel. Having held its tenth place in December, a resurgent Kenya has once again ousted Tunisia, which falls to 11th place in the ranking for March 2007. In so doing, Kenya also bumps Israel down to tenth, a place which we expect Tunisia to take once more in the near future - in fact it is possible that it has already has with the end of Q2 2007 just over a week ago. For Q1 2007, at least, Israel's 7.8m customers marked the barrier for entry into the top 10. Kenya was a little way ahead with 8.4m and Iraq the same distance in front of Kenya with 9.0m customers. From eighth placed Iraq up to first placed South Africa the ranking remains as it was three months ago in the review for the fourth quarter of 2006, although the relative positioning of the occupants of the places has changed. At the head of the table, Nigeria is catching South Africa, reducing a deficit of 5.4m at the end of 2006 to only 3.4m customers at the end of Q1 2007. We expect Nigeria to become the Middle East & Africa's largest market by connections before the third quarter is out, although this does not necessarily signify that the number of real mobile users is higher. In fourth place, Saudi Arabia got to within 350k customers of Algeria and may well already have taken its third place, whilst fifth placed Egypt closed the gap on both of them. Morocco's sixth place is also under threat from Iran, which cut the gap by 80% from 1.68m to just 0.33m during Q1 2007. Three months ago, Mobile World looked at the size of the mobile markets in the ten largest countries in the MEA region, since four of this list are not in the current top ten ranking by customers shown in the chart above. The most likely member of this group to claim its rightful place is Tanzania, which lay in 12th place with 6.2m customers at the end of Q1 2007 but is in fact the continent's eighth most populous country. The most likely casualty will once again be Tunisia, which is likely to have taken back tenth place from Israel in the meantime. Next to enter the top ten could be either Sudan or the Democratic Republic of Congo. The Democratic Republic of Congo is the larger country, with a population of 64.1m to Sudan's 42m, but it was Sudan which stood further ahead in the ranking by customer numbers, with a base of 5.6m to Congo's 5.1m at the end of Q1 2007. The fourth rightful member of the top 10 is Ethiopia, MEA's third largest country by population, although it will most likely be several years before this market enters the top 10, finishing Q1 2007 as it did with a customer base of 1.4m. In the long run, by implication, Algeria, Saudi Arabia and Iraq should all lose their top 10 places (in addition to the aforementioned Israel) although if penetration rates follow the European model - and there is no reason to believe they won't - the situation is unlikely to prove to be this simple. (Source: Mobile World) Balancing Act

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Fwd: ICT Bill - wish list, Day 4 of 4.
by Alex Gakuru 15 Jul '07

15 Jul '07

[For some reason mail sent to <kictanet(a)kictanet.or.ke> now appears not to get through. Could others be having my problem?, change your kictanet list email address to <kictanet(a)lists.kictanet.or.ke>] --- Alex Gakuru <alex.gakuru(a)yahoo.com> wrote: > Date: Sun, 15 Jul 2007 03:29:38 -0700 (PDT) > From: Alex Gakuru <alex.gakuru(a)yahoo.com> > Subject: ICT Bill - wish list, Day 4 of 4. > To: Kictanet <kictanet(a)kictanet.or.ke> > > [eICT Bill download pointer courtesy of the Freedom > of > Information Network run by International Commission > of > Jurists - Kenya Chapter -- AlexG] > > http://www.kenyalaw.org/Downloads/Bills/communications_bill_2007.PDF > > see other eBills: > http://www.kenyalaw.org/Bills/ > > eKenyaGazette: > http://www.kenyalaw.org/KenyaGazette/ > > Alex > > > > ____________________________________________________________________________________ > Fussy? Opinionated? Impossible to please? Perfect. > Join Yahoo!'s user panel and lay it on us. > http://surveylink.yahoo.com/gmrs/yahoo_panel_invite.asp?a=7 > > > ____________________________________________________________________________________Ready for the edge of your seat? Check out tonight's top picks on Yahoo! TV. http://tv.yahoo.com/

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ICT Bill - wish list, Day 4 of 4.
by Alex Gakuru 15 Jul '07

15 Jul '07

[eICT Bill download pointer courtesy of the Freedom of Information Network run by International Commission of Jurists - Kenya Chapter -- AlexG] http://www.kenyalaw.org/Downloads/Bills/communications_bill_2007.PDF see other eBills: http://www.kenyalaw.org/Bills/ eKenyaGazette: http://www.kenyalaw.org/KenyaGazette/ Alex ____________________________________________________________________________________ Fussy? Opinionated? Impossible to please? Perfect. Join Yahoo!'s user panel and lay it on us. http://surveylink.yahoo.com/gmrs/yahoo_panel_invite.asp?a=7

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