Tuesday, August 30, 2011

KDN Appeals Court Verdict Over YU Interconnectivity

Kenya Data Networks (KDN) has taken steps to overturn a May 2011 court order which prevented it from switching off mobile phone operator Essar Telecom Kenya’s backhaul transmission connectivity.

KDN has argued that the order made on 25 May by Justice Muga Apondi is injurious, as it forces the wholesale operator to continue providing the cellco – which operates under the ‘Yu’ brand name – services which are no longer being paid for.

The debt owed to KDN currently stands at around KES133 million (USD1.4 million), and is increasing on a monthly basis. In legal papers filed last week, KDN stated: ‘Yu has been unable to even pay the undisputed amount as required under the agreement showing their unwillingness to meet their part of the bargain’.

Nairobi-based KDN has claimed that, as a result of Yu’s non-payment, it is currently operating at a loss.

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