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KDN, Soliton strike out-of-court deal

NAIROBI, Kenya, Nov 23 – Kenya Data Networks (KDN) and Soliton Telmec have agreed to an out-of-court settlement over a winding-up petition filed by the latter against KDN.

By the terms of the settlement agreement, Soliton has undertaken to withdraw the suit against KDN in the High Court with both parties further agreeing to withdraw various applications and appeals arising from the petition.

KDN Chief Executive Officer Shahab Meshki said that both parties had settled their disputes outside court regarding outstanding accounts and verification of work done and was looking to looking to continue their mutual business association.

“We sat down with the Soliton Management, and all disputes relating to payment and verification of work done were settled to the satisfaction of both parties. Thereafter, the amounts agreed to be outstanding, with necessary adjustment and set off, were duly settled,” Meshki said.

Engineering firm Soliton Telmec had taken KDN to court demanding Sh678 million for laying the inland fibre optic cable from Thika through Garissa to Mombasa in 2007, but the Internet company claimed it was being overcharged for the job and only paid part of the invoiced fee.

This then saw Soliton further demand the winding up of KDN for alleged non-payment of Sh400 million, which was challenged by KDN.

Meshki said that it was unfortunate that the matter went to court citing that the company had the financial capability to settle any debts that it had.

“KDN is not, and has never been in financial difficulties as evidenced by the present settlement. Both parties have agreed to look into possible ways and means to continue with their partnership in areas of collaboration, and mutual interest. KDN is a successful and vibrant business. We provide key telecommunication infrastructure services to leading enterprises in East Africa, and will continue to do so,” he said.

Soliton Chief Executive Officer Engineer Abdirahman Sheikh said the matter was unfortunate and the court action arose because of misunderstandings in the financial documentation and accounting records between the companies.

“In our long relationship with KDN before this court action, we have known the company to be innovative, responsible and a major carrier of carriers that provides important communication services not only in Kenya but also in the region as a whole, and we are proud to have been part of KDN’s success. We are ready again to be part of KDN’s future success as we work in to possible ways and means of future co-operation,” he said.

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