KDN Closing down? Now that's sad.

It's possible,the court has also ruled so.Employee salaries are also being delayed.

A guy....please weka link.This is the biggest data provider in Kenya and if it was true.....shida!They carry much of Safaricoms data,MTNs data etc.

@QW25081985....which day was that?I only remember the story on Business Daily saying that KDN was to deposit a huge some in Soliton Telmec's account for some fiber civil works that was in contention.Soliton has applied to have KDN wound up if they were unable to pay the huge sum....Now I don't know if they actually paid up.

KDN-Holding-Statement
http://corporatetalkgrou...n-holding-statement.html

KDN wishes to set the record straight without discussing the merits of the dispute which is still pending before court as follows:

KDN, the leading Telecommunication Infrastructure Company, entered into a Network Expansion Agreement dated 27th September 2007 with Soliton.

A dispute arose between the parties regarding payment for work claimed to have been performed by Soliton. KDN and Soliton agreed to a joint audit of the work done, the first of which was commenced on the Thika Garissa Mombasa Route. The joint report dated 31st August 2010 indicated that significant aspects of the work had not been performed. Thereafter, Soliton withdrew from reconciliation of accounts and, in pursuit of its claims, filed the present Winding Up Petition on 18th October 2010 against KDN.

On 3rd November 2010, KDN filed an application to stay the hearing of the Winding Up Petition, and refer the dispute to arbitration as provided in the Network Expansion Agreement. The court ordered a stay until KDN’s application was heard and determined. On 30th august 2011, after hearing the parties, the Court surprisingly dismissed the application, and ruled that the Winding Up Petition should proceed to hearing.

KDN immediately applied for an order of stay pending appeal to the Court of Appeal, principally on two grounds:

a) The dispute should have been referred to arbitration as the contract between the parties provided for dispute resolution through arbitration.

b) The alleged debt remains disputed on substantial grounds, with both claiming against each other.

The High Court ordered a stay of its orders for 30 days on condition that KDN deposits a sum of Kshs. 400 million in a joint income account to be controlled and operated by the two counsels on record.

KDN has, on 8th September 2011, since filed a Notice of Appeal and an application under certificate of urgency for Orders of Stay pending the filing, hearing and determination of the intended appeal from the Ruling of the High Court.

KDN remains the largest private data carrier and infrastructure provider in the country with a turnover running into Kshs. 4 Billion as at the last financial year. It operates a combination of microwave radio and fiber optical links, and houses and maintains a number of international internet gateways.
KDN unveiled a multimillion dollar Data Centre on 6th September which is an indicator of the financial health of the company and a statement of commitment and participation to the Kenyan telecom industry.

Access Kenya has 400 kms of fiber, KDN has 5000.
Ignorance galore

Lets watch.I don't see KDN going anywhere.How much is in contention?400Million?That is not soooo much for a company that carries data for several other ISPs.

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If it was not much, they would have paid up don't you think?[/quote]


What do't you understand about 'disputed' amount ?

The thing is KDN is disputing the amount. Any well run business would not go around paying disputed amounts especially if it is the range of 400M. Stuff like this happen all the time - when money is owed and the other party disputes then the party owed the money instead of suing goes for the winding up option in a bid to force the hand of the other party. It works with varying degrees of success and it seems that the court is siding with the Soliton but it is far from over.