ATC Kenya demands $3.2 million down payement from Telkom to turn tower sites back on

American Tower Corporation Kenya (ATC Kenya) has demanded a down payment of KES500 million ($3.26m) and KES150m ($978k) per month from Telkom Kenya to turn back on mast sites it switched off earlier this year.

Reports note that ATC had turned off 246 mast sites seven months ago and is yet to switch them back on. The debt owed by Telkom has risen from KES4 billion ($26m) in May to KES7.1bn ($46.2m) as of October. It is expected to increase further as the debt accrues interest at the rate of KES300m ($1.9m) per month as Telkom has been unable to pay, breaching a contract both companies signed in 2018.

Sonesson told the Senate, "This led to the event [where] we decided to disconnect 900 out of the 1,000 leases that we have with Telkom Kenya. When I sent an invoice of KES300 million linked to the leaseback to Telkom Kenya, there is a KES50 million VAT that we are required to pay to Kenya Revenue Authority. It is a cash out for us that we are not getting paid but we are paying the VAT.”