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Introduction

The Communications Commission of Kenya (CCK) is the regulatory authority for the communications sectorin Kenya. Its regulatory mandate spans the fast growing telecommunications, broadcasting, IT (e-commerce) and postal/courier industries, including managing the countrys frequency spectrum.

CCK is mandated to license all communications systems and services in the country. In executing this andits other responsibilities, CCK is guided by the provisions of the relevant statutes, including the KenyaCommunications Act, 1998, Kenya Communications (Amendment) Act, 2009, and the KenyaCommunications Regulations. These legal documents are available in hard copy at the GovernmentPrinter:www.governmentpress.go.keand on soft copiesat:http://www.cck.go.ke/regulations/sector_legislation.htmlandhttp://www.cck.go.ke/regulations/sector_regulations.html

Commercial telecommunications licensees are authorized to set up telecommunications systems and/or toprovide telecommunications services to third parties in accordance with the license terms and conditions.CCK issues commercial licenses on a first-come-first-served basis and the turnaround time is 135 days.

Unified Licensing Framework

The Commission has in place a Unified Licensing Framework (ULF) which is technology and service neutral.The ULF market is structured into three main license: (i) Network Facilities Provider (ii) Application ServiceProvider (iii) Content Service Provider. In addition, investors who wish to land a submarine cable in Kenya

require a Submarine Cable Land license while those interested in building system for the provision ofinternational voice/data services are required to get a license for international Systems and Services. Detailsof the various telecommunications license are available on the web-link:http://www.cck.go.ke/licensing/telecoms/market.html

An entity may be issued with multiple commercial licenses, provided that it maintains separate accounts foreach license.

Telecommunications licensing requirements

The licensing process commences with the submission of a duly completed application form. Applicationforms are available for download at:http://www.cck.go.ke/licensing/telecoms/application.html.

At page two of each application form, you will find details of the minimum requirements for acceptance of anapplication for each type of license and applicable fees. In general, all applicants for commercial licensesshould meet the following minimum conditions:

1. The entity should be registered in Kenya as a company, sole proprietor or partnership,2. Have a duly registered office and permanent premises in Kenya,3. Provide details of shareholders and directors,4. Issue at least 20% of its shares to Kenyans on or before the end of three years after receiving a

license,5. Provide evidence of compliance with tax requirements.

Telecommunications licensing procedures

An application is deemed to have been received when CCK accepts the application fees and issues areceipt. Applications send by post are logged in as letters until/unless the applicable license application feesis received.

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Once an application is accepted, it undergoes processing which may include publication in the Kenya Gazettein accordance with the law. At the conclusion of the licensing process, an applicant is advised of the outcomein writing.

Post-licensing issues

1. If CCK approves an application for a telecommunications license, the applicant is required to take upthe offer within six (6) months, failure to which he/she may be required to apply afresh if stillinterested with the license.

2. On taking up the offer, the license must be put into operation within 12 months from the date ofissuance.

3. It is a requirement that all electronic communications systems be type approved by CCK before theyare activated. Further, CCK inspects all networks before they are put into operation.

4. Telecommunications licenses relate to operational authorization which allows licensees to set-upsystems and/or providing services to third parties. These licenses are not tied to any roll-outresources such as radio spectrum, numbering (including ENAM) and/or way-leaves. Investors areadvised to seek for such resources separately after they are granted a relevant operational license.

5. Investors are encouraged to familiarize themselves with licensing terms and conditions available onsample licenses posted at our website:http://www.cck.go.ke/licensing/telecoms/application.html.

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