Kenyan telecom operator Safaricom has won a legal battle with the operator of Yu Mobile brand, Essar Telecom Kenya, over the outstanding payment of interest on mobile cancellation charges
The high court declared the Kenyan operator was given the right to charge a three per cent interest, higher than the normal rates offered by banks including KCB, Standard Chartered Bank and Barclays if fees were not paid 15 days after the end of a quarter.
Safaricom said that it “will discourage its competitors from defaulting on interconnection fees by attaching hefty penalties, arguing that failure to access the payment is hurting its cash flow,” Business Daily reported.
The judge dealing with the case, Justice Jonathan Havelock explained, “Although I have allowed payers a and c of the plaint dated 11 April 2012, I found that certainly as far as collection charges are concerned, the defendant has put up the triable issue.”
Essar recently revealed that it would sell a 73 per cent stake in its Kenyan telecom business, with plans to leave the East African market due to low levels of earning and a difficult working environment.
