Give regulators room to work, CS Matiang’i tells MPs over Equity Bank’s thin SIM

ICT Cabinet Secretary Fred Matiangi says he has been briefed in detail about the decision the regulator has taken and is aware the regulator has consulted widely. [PHOTO:FILE/STANDARD

NAIROBI, KENYA: The Government has thrown its weight behind the Communication Authority of Kenya (CA) in the ongoing feud between Equity Bank and Safaricom on the overlay sim card technology.

ICT Cabinet Secretary Fred Matiang’i has stated that CAK’s  decision to allow Equity Bank to roll out its Virtual Mobile Network, which uses the overlay or  thin sim technology was justified and the regulator’s decision should be respected.

“I have been briefed in detail about the decision that the regulator has taken and I’m aware that the CA has consulted widely and obtained scientific evidence on this matter that is why I’m satisfied with the decision that was taken,” he said.

On Monday the Communications Authority (CA) after meeting with the Central Bank of Kenya, CBK, gave its approval for Equity Bank to roll out its new service, which has raised the stakes in Kenya’s lucrative mobile telecommunications industry.

“CA and CBK have held discussions with Safaricom, Finserve and Taisys on the matter as well as other market players and global watchdog GSMA regarding the raised concerns,” CA board chairman Ben Gituku stated.

“We have established that the overlay sim card technology complies with minimum mandatory standards in manufacturing and no major complaints regarding the interception of communication on the main-sim have been reported so far.”

Based on the outcomes of these consultative meetings, CAK stated that there was no reason to block the introduction of the overlay sim technology into the Kenyan market.

Equity Bank was thus allowed to carry out pilot operations of its mobile virtual network service for one year under strict supervision during which any vulnerabilities detected will lead to the suspension of the service.

Issuing permission

However, Parliament on Wednesday issued a statement seeking to stop the industry regulator from issuing permission for the roll-out of over-lay technology.

Instead Parliament stated that the House committee on Energy and Communication has formed an 11-member committee led by Rarieda MP Nicholas Gumbo to investigate fears raised by Safaricom on the security risks of the overlay-sim technology.

“This is a decision of this committee. We are apprehensive of the overlay sim technology. The standing orders of the House allow for independent investigations by experts to look into such matters. The matter is now under investigation. If the process continues, CA will face the consequences,” stated Committee Chairman Jamleck Kamau.

Dr Matiang’i, however, states that the regulator is an independent body that, in accordance with the Constitution, is mandated to make decisions which pertain to regulating the market.

“According to Article 34 of the Constitution, the regulator should be independent from political, government and business influence,” stated Matiangi.

“In the interest of our country we need to support institutionalisation and follow the laid down processes. CA is an independent body, they have taken a decision, the Government is satisfied with the decision and if there are any issues that emerge we need to follow the channels that exist.”