CCK pays Sh4 billion dividend to Treasury

The Communication Authority of Kenya Tuesday presented Sh4 billion dividend cheque to the government as it ordered Safaricom to open up M-Pesa network to other users. 

The amount was realised from the financial year ended June 30, 2013 out of licences fees levied to operators after paying taxes.

“The previous year, we handed over Sh6 billion to the National Treasury; There were no deductions as we were not compelled to pay tax,” said Mr Francis Wangusi, authority director general. 

The cheque was presented to President Uhuru Kenyatta as the authority unveiled its new image officially re-branding to CA from the former Communication Commission of Kenya.

The re-branding was in line with the new industry law Information and Communication (Amendment) Bill, 2013. 

President Kenyatta said the change will position ICT as key driver of the economy as anchored in Vision 2030; this commences as CA embarks on opening up four regional offices in Mombasa, Kisumu, Eldoret and Nyeri to realise its new mandate. 

At the launch of the new identity, the regulator also presented Sh2.3 billion fee to the National Treasury for renewal of Safaricom communication licence.

Mr Wangusi said the licence was renewed upon an agreement with Safaricom on a regulatory framework that will compel the mobile operator to improve its network quality and share its agency network. 

“Under the framework, CA will offer Safaricom resources to improve its quality of service,” he said.