logo
ADVERTISEMENT

KENNETH BASANGA: CS erred by rooting for telco

'Punishing success' statement unfortunate.

image
by KENNETH BASANGA

News09 November 2021 - 15:51
ADVERTISEMENT

In Summary


  • It is a widely accepted though unspoken tenet that government has no business being actively in business
  • Theirs is to ensure that measures are in place to ensure that business thrives
A mobile phone user on the street of Nairobi in 2010.

Whenever a high-ranking civil servant speaks, particularly on a matter that falls within a docket they hold, it is difficult not to assume that it is the government’s official position.

Thus, it is difficult not to ascribe the same of the recent statements attributed to ICT Cabinet Secretary Joe Mucheru, regarding the state of the telco industry in Kenya.

According to reports, the CS went on record, in submissions to the Senate Committee on Information, Communication and Technology, saying that declaring a player dominant is "punishing success", adding that recommendations of the Analysys Mason study on the state of competition in the telco industry could not be implemented as it is outdated.

It is unfortunate that the CS has chosen to take sides, to the point of sloganeering. It is difficult to tell whether he is still the independent, objective arbiter and policy guide of the telco industry.

It is a widely accepted though unspoken tenet that government has no business being actively in business. Theirs is to ensure that measures are in place to ensure that business thrives.

It, therefore, follows that the role of any responsible, well-meaning CS is to promote the growth of the industry under their charge, without playing favourites. Appearing to endorse one player’s dominance that has been convincingly proven by a proper study is not good for the industry.


Kenya’s telco industry is credited for revolutionising many aspects of life through voice, data and mobile money offerings. However, we cannot afford to be comfortable and complacent with the gains made so far. We have to aim to reach out for the huge potential waiting to be unlocked by expanding the pie.

A good starting point is in creating and sustaining a conducive and competitive operating environment. A level playing field will not only ensure that existing players get a return on their investments, which inspires them to innovate consistently to gain market share, but also attract fresh investors.

This benefits the economy by expanding the ecosystem, creating opportunities for Kenyans to earn a livelihood directly and indirectly. The ultimate beneficiary is the subscriber, who will enjoy greater value from telco products and services, as well as more choice with respect to service providers.

If delivering on this calls for the declaration of dominance and measures initiated to remedy the situation, so be it. It is not in the interest of any of the players, for any of them to be punished for their successes. To the contrary, all players in the industry need to thrive, but in a fair operating environment. 

Irresponsible and misleading statements, like the ones uttered by a person with the stature of a Cabinet secretary, who advises the president on the industry, go against this very spirit.

It sends a very disturbing signal to investors, the telco industry and the global economy. Can the telco industry in the country continue trusting his leadership after such blatant favouritism?

ADVERTISEMENT