Hundreds of Telkom Kenya employees may lose their jobs as the government threatens to revoke the company's licence.

Ezra Chiloba, CEO of the Communications Authority of Kenya (CA), has stated that the State body will not renew Telkom's licence due to the company's massive debt burden of Ksh.9.4 billion.

Chiloba revealed the alarming revelations on Tuesday while testifying before a joint committee of Parliament investigating the Telkom Kenya takeover.

"What this means is that when Telkom comes up for a new licence next year, the authority will most likely not issue that licence," stated the CA boss.

"We are concerned about severe regulatory difficulties. When I say Ksh.9.4 billion, it was Ksh.7.2 billion at the time we wrote the letter to National Treasury...but the data has subsequently risen."

According to Chiloba, some service providers, such as the American Tower, which leases towers to Telkom Kenya, may cease operations soon.

"If American Towers decides to shut down Telkom, Telkom Kenya clients will be unable to receive service," he explained.

Gideon Kimaiyo, Member of Parliament for Keiyo South, revealed to the committee earlier in the day that plans were already in the works to sell all shares held by Jamhuri Holdings and the government of Kenya to another entity, claims that Telkom Kenya board Chair Edward Njoroge confirmed to the committee.

MPs accused the Telkom Board Chair of being utilised by the Helios Corporation, domiciled in Mauritius and the Cayman Islands, to micromanage the firm in their favour.

Mr. Njoroge struggled to explain his position in the firm's unusual buyout.