Airtel's dispute with distributors to be arbitrated

A case challenging a contractual agreement filed by distributors and telco-company Airtel Kenya will now be heard by an arbitrator.

The two parties yesterday agreed to settle the issue out of court once they agree on an arbiter.

The case filed in the High Court had 24 distributors who told Justice Mbogholi Msagha  that the contract Airtel offered them in 2011 had a clause allowing the parties to go to arbitration in the event of a dispute.

In the case, the distributors accused the company of hiking the targets they ought to meet and at the same time changing payment price. Airtel had notified the contractors that it would change the terms of their contracts, and this was met with protest from the distributors.

The distributors told Justice Msagha that their businesses would be affected negatively by the new regulations as the costs ceiling would increase.

The court was told that the proposed changes would only favour Airtel. The judge allowed the parties to return to court on June 25 for a mention of the case.