The Senate Committee on Information Communication and Technology (ICT) has directed the Communications Authority of Kenya (CAK) to harmonize the national and county governments' levies and wayleaves to avoid double taxation of the telecommunication industry in the country. 

This comes after CAK informed Senators that county governments are charging expensive wayleave charges for the laying of the fibre optic cables, exponentially driving up the cost of doing business and hindering ICT network penetration. 

Although the communication services are regulated at the national level with national regulatory charges and levies, county governments and other bodies such as Kenya National Highways Authority (KeNHA) and Kenya Urban Roads Authority (KURA) are also charging wayleave charges for laying of fibre optic cables and establishing base stations. 

While appearing before the Sen. Allan Chesang-led Committee earlier today, Communication Authority of Kenya Director-General Mr. David Mugonyi informed the Senators that the industry players had requested the Authority to engage with the Ministry of ICT to marshal support for the harmonization or exemption on different levies, charges, and rates charged by counties and other government agencies. 

He, however, added that his attempts to convince the Council of Governors (CoG) to exempt the telecommunication companies from paying extra levies, charges and rates, hit a snug after the county bosses insisted that collecting levies was one of their core mandates. 

“We have taken steps to speak to counties to see if they can exempt the players from paying extra levies since they pay the national Government. However, the county governments say that collecting levies is one of their functions,” stated Mr. Mugonyi.

“We have escalated the matter. The Executive, CoG, and industry players are meeting to find a solution to the impasse,” the CAK boss added. 

Members of the ICT Committee urged the regulatory authority to fast-track the negotiation process to ensure the fibre is seamlessly delivered, the number of dropped calls from the telecommunication firms is reduced and their voice quality is improved. 

“We have received numerous complaints from the industry players on this issue of double taxation. This falls squarely under you Director-General because you’re the one charging the licensing on the national level. Find a solution to it,” Sen. Chesang (Trans Nzoia) directed. 

Mr. Mugonyi appeared before the ICT Committee to respond to a Statement sought by Sen. John Methu (Nyandarua) regarding the increased number of dropped calls on the Safaricom network provider.