A Bill seeking to protect consumers and promote competition in the telecom sector is before the National Assembly.  

Members of the National Assembly debated the Kenya Information and Communications (Amendment) Bill (National Assembly Bill No. 52 of 2022)  which is at the second reading stage.  

The Bill, sponsored by Hon. Elisha Odhiambo (Gem), seeks to amend the Kenya Information and Communications Act Cap. 411A to enable persons operating a telecommunication system or providing a telecommunication service to engage in any other business and provide for the separation of such other business from the telecommunication business. 

The amendments will provide for a regulatory framework that will curb anti-competitive practices by the large industries in the sector in compliance with Article 27 of the Constitution which provides for freedom from discrimination.  

While moving the Bill, Hon. Elisha Odhiambo argued that the Bill seeks to amend the Act to make provision for quality of service to consumers making calls by compelling licensees in the telecommunication industry invest in infrastructure that will guarantee quality of service for consumers making calls.

The Gem legislator also highlighted the issue of frequent call drops and proposed penalties for service providers. "Mama Mboga at home buys credit for Ksh10. When she has five call drops, the money is gone," Hon. Odhiambo said, emphasizing the need for consumer protection. 

Hon. Charles Onchoke (Bonchari) supported the Bill's focus on addressing market dominance and improving service quality. He emphasized the need for stronger regulation of telecommunications companies to protect consumer interests. 

Kenya Information and Communications (Amendment) Bill, 2022 also proposes measures to promote competition and ensure a level playing field for all providers. This includes separating non-core telecoms businesses, such as financial services, from core telecoms operations. 

Hon. Caroli Omondi (Suba South) acknowledged that, "The separation of core and non-core telecommunications services is essential to promote competition and protect consumers. We need to ensure transparency in pricing and prevent unfair practices." 

Speaking on market dominance, Hon. Elisha Odhiambo, "If a telecom company wants to operate in the money market and compete with banks, it should obtain a specific license that allows it to do so. This will ensure fair competition with banking institutions." 

Hon. Caroli Omondi also called for stricter regulation of interest rates on mobile loans and increased transparency in pricing. "This Bill has the potential to significantly improve the quality of telecommunications services and enhance consumer satisfaction." 

The Bill also seeks to improve the management of the Universal Service Fund by the Communications Authority of Kenya by expanding the objectives of the Fund, prescribing the requirement for reporting by the Communications Authority on how the Fund is utilized, enumerating the formula for distribution of monies from the Fund.  

If enacted consumers in remote areas will benefit from increased funding for the development of telecommunications infrastructure in underserved areas. This would help bridge the digital divide and improve connectivity in rural and remote regions. 

Hon. Beatrice Elachi (Dagoretti North) praised the contributions of telecoms to society but acknowledged the need to address market dominance.  Adding that, "We need to balance the need for regulation with the need to encourage innovation and investment in the telecommunications sector."   

On his part, Hon. Wilberforce Oundo (Funyula), pointed out areas of the Bill that need improvement, the proposed amendments, particularly those related to penalties for call drops and measures to curb dominance. 

The Kenya Information and Communications (Amendment) Bill (National Assembly Bill No. 52 of 2022) Bill is expected to proceed to the Committee of the Whole House.