CA: Mobile industry looses millions of shillings through illegal sim cards racket

CA: Mobile industry looses millions of shillings through illegal sim cards racket

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Communication Authority of Kenya and law enforcers on Thursday arrested one person and confiscated 4 sim box gadgets in Lavingtone Nairobi .

This follows a racket  the authority says has led  to loss of millions of shillings in the country’s communication sector.

Some of the equipment confiscated by CA.

Speaking to the press in his Nairobi office, the commission‘ Authority s Chairman Ngene Gituku said confirmed that they confiscated the gadgets which have the capacity of holding 144 sim cards and capable of making international calls continuously.

Commission Authority Director general Francis Wangusi left lead other top officials during press conference in Nairobi.

He said the authority was tipped  off  by a concerned land lord in the area where they recovered 3,017 Orange sim cards ,2,678 Airtel sim cards , 52 for YU and  80 for Safaricom .

“Instead of calls getting through  the traditional international gateways , these operators receive the call via internet and use the sim box, they re- originate the calls as if being originated by  local customers and are used for business calls.”Gituku said

The authority indicated that the vice leads to loss of millions of shillings in mobile telephone industry through tax evasion loose of huge  income and compromises quality of services.

“The one of the 680 hotel we raided last year they were making close to 38 million shillings a month if we are having such similar operators lets say ten, then you can see the amount of money mobile operators are loosing.”said Director General Francis Wangusi.

Consequently, Gituku asked  local mobile operators to procure sim box detecting tools capable of detecting  sim boxing activities and disconnect any one undertaking such illegal activities.