JOHANNESBURG, South Africa-Kenyan mobile network operator KenCell said it would like the government to abandon the 5-percent excise duty on airtime introduced in the 2002/2003 financial year budget.
Phillipe Vandebrouke, Kencell managing director, said the tax has reduced the operator’s revenues by at least 5 percent, and the reduction in revenue will have a negative effect on the operator’s network expansion plans and hinder the government intention to deliver telecommunications to rural areas of the country.
Vandebrouke said: “The 5 percent represents 30 base stations (BTS), which could be installed in remote and rural areas.”
Intention of the tax was to raise US$11 million to fund micro-finance institutions, offering credit to small businesses and increasing the rural infrastructure capacity.
Vandebrouk added Kencell has invested US$265 million during its two and a half years of operation in the country.
