Airtel Networks Kenya Limited is at risk of being slapped with a fine of Sh10 million if allegations of it breaching a contract with Payment service provider Pesapal are proven to be true.
In documents filed before the Milimani Law Courts, Airtel and Pesapal Limited, Mawingu Airtime Limited, Interintel Technologies Limited, and Okazaki limited (Interested Parties (IPs) entered into distributorship agreements on diverse dates being December 5, 2012, to July 2019.
The Interested parties were to sell and distribute Airtel's products.
The agreement had a dispute resolution clause which provided for disputes between the parties to be resolved by arbitration.
But fast forward to September and October 2023, Airtel received notifications of investigations from the Communication Authority (CA).
CA notified them of investigations they were undertaking in respect of complaints lodged by the (IPs) relating to alleged abuse of buyer power.
From the papers, if proven to be true, airtel could part with a fine ranging from a minimum of Sh10 million to 10 percent of the preceding year's gross turnover.
The notification from CA also directed Airtel to respond to the complaints within 14 days.
But Airtel says it can’t respond to the complaints unless it is provided with copies of the same.
"The investigations and potential penalties likely to be imposed by the CA require as a bare minimum that CA does furnish us with the individual complaints to enable us to file a robust and comprehensive response," Airtel says.
It argues that CA will be acting as investigator, judge and jury if it sustains efforts commencing investigations culminating in the imposition of penalties by CA without furnishing them with the complaints.
It wants the court to suspend investigations or proceedings currently being undertaken by CA in respect of complaints lodged by the complainants and in particular the directive to file responses before December 6.
‘We cannot respond to a case where particulars of the complaint have been withheld by CA," it says.
The matter is to be mentioned before Justice John Chigiti on February 14, 2024.
