MultiChoice Kenya recently appeared before the Parliamentary Investments Committee on Social Services Administration and Agriculture to address inquiries related to its partnership with the state broadcaster Kenya Broadcasting Corporation (KBC) and GOtv.
According to records presented by MultiChoice, KBC received Ksh 116 million in dividends in 2010, but only Ksh 96 million could be accounted for. For the fiscal years ending in June 2018 and June 2019, KBC did not receive any proceeds, a situation attributed by MultiChoice to reduced subscriptions amid challenging economic conditions. The Committee sought clarification on various aspects, including the structure of MultiChoice Kenya, support provided to KBC, initial funding, network infrastructure, business performance, and dividend distributions. MultiChoice Kenya also shed light on GOtv’s shareholding, co-location, and the spectrum of GOtv Kenya frequencies.
During the session led by Emanuel Wangwe, the Committee questioned the transfer of shares from MultiChoice Kenya to MultiChoice Africa without KBC’s knowledge, as KBC held a 40% share in the agreement. In response, MultiChoice Kenya’s Managing Director, Nzola Miranda, clarified that the change in name from Multichoice Africa Limited to Multichoice Africa Holdings BV did not impact the shareholding, emphasizing that Multichoice Africa Limited no longer exists.
Committee members Geoffrey Wandeto and Vice Chairperson Caleb Amisi requested all initial agreements related to pay TV services from MultiChoice. Miranda explained to the Committee that KBC was supposed to broadcast Multichoice Africa’s international signals on KBC channel 2, a point of contention in the agreement. The Committee highlighted KBC’s financial challenges, directing MultiChoice to provide audited accounts and bank transmission statements to reconcile discrepancies.
In a subsequent meeting, the Committee engaged Stephen Isaboke, Chairman of GOtv Kenya, and Vincent Opiyo, Regional Finance Director of MultiChoice Africa and Director of GOtv Kenya. They explained the 2012 joint venture proposal, where KBC agreed to a 10% shareholding in GOtv. However, the Committee discovered that KBC had never received dividends from this share. Concerns were raised about Isaboke, an employee of MultiChoice, owning 30% shares, prompting calls to involve the Competition Authority. Isaboke clarified that the 30% ownership stemmed from Multichoice’s capital and explained the regulatory constraints that prevented KBC from holding the shares directly.
