Kenya Telecom Corporation Winds Up

June 29, 1999

NAIROBI, Kenya, (PANA) - The Kenya government Monday appointed a nine-man
transitional management committee to liquidate the Kenya Posts and
Telecommunications Corporation (KPTC), according a report published by the
Kenya Gazzette.

It said the appointees include the transport and communications permanent
secretary who would act as chairman. The other members are the permanent
secretary in the treasury, the solicitor-general and public figures in the
telecommunication and finance sectors.

Transport and communications minister, William Ole Ntimama, said in the
gazzette that the committee would assist the corporation's board in the
process and would remain in office until the winding up is completed.

Ntimama said in effect, the legislation formalising the winding up of the
giant body, the Kenya Communications Act and the Postal Corporation Act
would come into operation 1 July.

Ntimama's announcement marks the continuing progress in the privatisation
of the corporation, which will from 1 July, begin functioning as three
entities: Telekoms Kenya, Kenya Postal Corporation and the Communication
Commission of Kenya,(CCK) the licensing and regulatory authority of the
government.

Telekoms Kenya will provide telecommunication services while the Kenya
Postal Corporation will deal with postal services. The privatisation of
KPTC is one of the pre-conditions for the resumption of talks on a
205-million-dollar IMF loan package for Kenay under the fund's Enhanced
Structural Adjustment Facility which was suspended in July 1997.

The CCK has meanwhile commenced operations with the publication of an
international tender for people willing to invest in the cellular phone
domain in the country.

The government this month sought the World Bank's approval for a partial
extension of a 22.3-million-dollar credit facility to finance the
privatisation of KPTC ealier programmed to end 30 June 1999. The credit has
been extended twice in 1997/98 and 1998/99. The governemnt expressed
confidence that the World Bank would grant its request because the
privatisation process was on track.

The KPTC came into being in 1977, following the collapse of the then East
African Posts and Telecommunications Corporation (EAPT), a body which used
to run postal and telecomms services in the then East African Community
member states of Kenya, Uganda and Tanzania.

Copyright © 1999 Panafrican News Agency. All Rights Reserved.