Buganda Kingdom’s K2 telecom has been closed over Shs96m debt.
Ian Rumanyika, the Manager Public & Corporate Affairs at Uganda Revenue Authority (URA) confirmed the closure.
“K2 telecom was closed last week. It has a debt of Pay As You Earn (PAYE) totaling to Shs77.8m. It also has a debt of Local Excise Duty (LED) totaling to Shs17m,” Rumanyika said, adding that in total, the telecom firm that entered the Ugandan market on the eve o 2013 owes the tax body about Shs95.8m.
He added: “We have had a long discussion with K2 telecom from 2013 up to 2018 until we realized that the Memorandum of Understanding that we had [with them] was not being fulfilled as expected, so we had to close in last week and closed them. We expect them to come back on table and probably clear the debt and then we shall re-open them.”
K2 telecom, which uses the 073 code, has about 150,000 subscribers. Its website is also currently down.
The company offers voice calls, sms and internet data services. The telecom firm has had financial woes since it entered the competitive market over four years ago.