Illegal phone connections cost Kenya’s Exchequer Sh38b in revenue

NAIROBI: Mobile phone subscribers with several SIM cards could soon be put under scrutiny as the Government moves to crack down on illegal communication providers.

The Communications Authority of Kenya (CA) Thursday stated that there is an upsurge of illegal connections that circumvent legal communication channels and deny the Government millions in tax revenue.

“With improved internet connectivity in the country it has become easier to provide voice through internet protocol (VOIP) and some providers are procuring SIM cards from telecommunication service providers and installing SIM boxes providing international calls,” explained Mr Francis Wangusi, CA Director General.

Wangusi further reckons that the illegal communication providers are a security risk since their operations are unregulated and often hard to trace, hence providing an avenue for criminal activity.

“The communication providers are unlicensed and the services they provide are cheaper since they do not pay any regulatory fees or taxes and can facilitate money laundering, terrorism and kidnapping,” explained Wangusi.

He was speaking at the regulators’ headquarters where several communication equipment had been seized from a residential apartment in Nairobi’s Lavington estate.

During the raid, police recovered four Sim Box equipment with a combined capacity to hold 144 SIM cards. It recovered over 5,000 SIM cards belonging to Orange (3,017), Airtel (2,678), Yu (52) and Safaricom (80).

This is the second time in as many months that the regulator has apprehended illegal communication service providers.

Last year a similar communication bureau operating at Nairobi’s 680 Hotel was unearthed with the CA stating that the perpetrators were making as much as Sh38 million a month in revenue.

CA is now reaching out to other agencies like the Kenya Revenue Authority to assist with the tracking down these illegal service providers.

Mobile service providers have also been asked to monitor abnormal sim card activity or individuals who register an abnormal number of Sim cards.

“When you have a situation where one mobile subscriber has registered more than 10 Sim cards and they are always busy then the operator needs to be able to help us determine whether this traffic is legitimate or not,” said Wangusi.

The regulator is also looking to increase the penalties from the current Sh1 million to deter would-be perpetrators.