Communications Authority of Kenya (CA)  chairman Mr.Ngene Gituku (centre) addressing the press yesterday following allegations that taxpayers may have lost Sh.5.2 billion in the 700 Mhz trial authorization given to Jamii Telecommunications. He is accompanied by CA Director General Mr.Wangusi (left) and Board member Mr. Mwenda Njoka.

The Communications Authority of Kenya (CA) has refuted claims appearing in a section of the media that taxpayers could have lost Sh.5.2 billion as result of a 700 Mhz trial authorization given to Jamii Telecommunications Limited.

‘‘Contrary to what appeared in the media today, the Authority wishes to clarify that no money has been lost in the authorization given to Jamii Telecom,’’ said CA chairman Mr. Ngene Gituku at a press briefing.

The media reports had alleged that Jamii Telecom paid a paltry Sh.100, 000 to secure the 700 MHz spectrum while other operators had paid Sh.2.5 billion for similar allocations, claims that are a gross misrepresentation of facts.

Mr. Gituku said Jamii Telecom was yet to be licensed for the said spectrum but was authorized in 2016 to run a trial on the 700 MHz spectrum for a year after which, it would be considered for licensing and subsequent payment of the requisite fees.

The Authority will issue a substantive statement on the matter in due course.

Communications Authority of Kenya (CA) Director General Mr.Francis Wangusi, CA Board Chairman Mr. Ngene Gituku, Information and Communications Technology Cabinet Secretary Mr. Joe Mucheru and Broadcasting and Telecommunications Principal Secretary Mr. Sammy Itemere during the 36th Ordinary Session of the Administrative Council of the Pan African Postal Union (PAPU) in Nairobi. The Administrative Council is one of the key decision-making organs of PAPU that meets annually to consider and approve the Union’s budget and work plan and review its performance.

The vast postal network offers a platform for deepening financial inclusion in Africa, Information, Communications and Technology Cabinet Secretary Mr. Joe Mucheru has said.

Addressing delegates attending the 36th Ordinary Session of the Pan African Postal Union Administrative Council at a Nairobi hotel, Mr. Mucheru said the Posts are better positioned in banking women, the poor, the less educated and those in the informal economy, who tend to be disadvantaged by other financial institutions.  

‘‘Postal networks should be an integral part of discussions in which governments, policy makers and international organizations design strategies for fostering financial inclusion,’’ said Mr. Mucheru.

According to the Universal Postal Union’s Global Panorama on Postal Financial Inclusion 2016, two billion people worldwide are financially excluded, meaning they have no access to financial services.

A GSMA report of February 2016 shows that at the end of 2015, there were almost five times more postal accounts than mobile money accounts, which at the time stood at 411 million worldwide. However, mobile money accounts are growing exponentially when compared with postal accounts.

The Cabinet Secretary also called for increased adoption of e-commerce on the continent, which he said now holds the key to the region’s socio-economic transformation.

‘‘E-commerce offers small and medium-sized enterprises (SMEs) a unique opportunity to access international markets. According to the International Trade Centre, e-commerce was estimated at over US$15 trillion for annual business-to-business transactions and well over US$1 trillion for annual business-to-consumer trade in 2015,’’ said Mr.Mucheru.

He however lamented that Africa’s contribution to the global e-commerce statistics was just below two per cent in 2015, and called on African states to put in place necessary interventions to foster the growth of e-commerce.

‘‘For Africa to become a key player in e-commerce, PAPU member states gathered here must address the four key barriers to the growth of e-commerce on the continent namely; financial, infrastructural, socio-political and the digital divide,’’ added Mr.Mucheru.

Africa is set to benefit from the Universal Postal Union (UPU)’s project targeted at transforming the Post and e-commerce in the region. The Regional Development Plan for Africa has identified e-commerce and financial services as the potential areas of growth for post.

‘‘We have noted that Africa is lagging behind in e-commerce business facilitation globally. We wanted to strengthen this link in the UPU e-commerce supply chain and provide an opportunity for the continent to join the rest of the world in this fast growing trade,’’ said UPU Director General Amb. Bishar Hussein.

The Ecom@Africa project which seeks to create a continental-wide postal e-market zone will be initially be rolled out in Kenya, South Africa, Cameroon, Côte d'Ivoire, Morocco and Tunisia with other countries set to join it later.

PAPU Secretary General Mr.Younous Djibrine said in actualizing the Ecom@Africa initiative, the Union has already embarked on the implementation of virtual platforms for e-commerce as well as smart storage and distribution systems in each of the five regions across Africa.

‘‘This project holds huge benefits for Africa and since its inception, PAPU has worked hard to ensure that Africa is not left by the wayside,’’ said Mr. Djibrine.

Communications Authority of Kenya (CA) chairman Mr.Ngene Gituku called on postal regulators across the continent to institute necessary interventions to harness the potential presented by the existing postal infrastructure and the prospects of e-commerce to further develop the postal sector.

‘‘Governments and regulators must take deliberate actions to increase access to Internet to sections of the population, to fast track the adoption of e-commerce,’’ said Mr. Gituku.

The outgoing chairman of the Administrative Council of PAPU, CA Director General Mr. Francis Wangusi rallied the delegates to fast track reforms at the continental postal body, to make it responsive to the realities of the current postal business ecosystem.

‘‘The rapid evolving postal operating and business environment calls for regular review of the constitutive framework of the Union,’’ noted Mr. Wangusi.

The Administrative Council is one of the key decision-making organs of PAPU that meets annually to consider and approve the Union’s annual work plan, budgets and review its performance.

 

Broadcasting and Telecommunications Principal Secretary Mr.Sammy Itemere (in blue suit, front row),Communications Authority of Kenya (CA) Director General General Mr.Francis Wangusi (on Mr. Itemere’s left) and Pan African Postal Union Secretary General Mr.Younous Djibrine (on Mr.Itemere’s right) with delegates from the continent  attending the Technical Committee Meetings of PAPU which kicked off in Nairobi today.

Broadcasting and Telecommunications Principal Secretary, Mr. Sammy Itemere, has challenged African countries to innovate in order to revitalize the dwindling fortunes of the postal sector amidst increased competition from new and emerging communication technologies.

This comes as experts from around 46 countries gathered in Nairobi to devise ways of modernizing the postal sector and positioning e-commerce as the new frontier for socio-economic development in the continent.

Mr. Itemere said the postal sector needs to harness the opportunities presented by ICTs to improve quality of service and open up new revenue streams through value addition to the existing postal infrastructure.

‘‘Contrary to initial fears that information and communication technologies would render the postal utilities irrelevant, ICTs have indeed created additional opportunities for the post in Africa to remain relevant despite competition from instant messaging technologies,’’ said Mr. Itemere while opening the Technical Committee meetings of the 36th Ordinary Session of the Pan African Postal Union (PAPU) in Nairobi.

He added that while the Post has a huge market in the continent in terms of Africa’s growing population, it is grappling with serious infrastructural challenges that hinder full exploitation of its benefits.

‘‘These limitations range from lack of unreliable electricity supply to postal offices to a large portion of the population that does not have access to Internet service that they need to order goods and services online, ’’ said Mr. Itemere.

In Kenya, Mr. Itemere noted, about 90 per cent of public post offices are connected to the electricity grid with about 89.7 per cent of the population accessing the Internet, an opportunity the Postal Corporation of Kenya can take advantage of to change its fortunes and sustainability.

CA Director General, Mr. Francis Wangusi, who is also the chairman of the Administrative Council of PAPU, called on the member states present to institute necessary reforms if the postal sector is to survive.

‘‘A strong PAPU is important in developing homegrown strategies and mechanisms to ensure the post continues to play its rightful role in promoting intra-Africa trade and in the socio-economic development of the region’’ said Mr. Wangusi.

African countries are also negotiating with the African Airlines Association (AFRAA) with a view to lobby airlines to accord priority to postal mail during transportation as well ass accept to shoulder liability in the event of loss of mail.

The meeting was also addressed by the PAPU Secretary General, Mr. Younouss Djibirine, Post Master General, Mr. Dan Kagwe, and Dr. Kousai Mrabet, Director, Commercial, Corporate and Industry Affairs at the AFRAA.

The week-long committee meetings will culminate in the plenary of the 36th PAPU Administrative Council set to take place from 8th to 10th May 2017.