Telkom Kenya

From Wikipedia, the free encyclopedia
This article is about the Kenyan telecommunications provider. For other uses, see Telkom.
Telkom Kenya
TypePublic Private Partnership
IndustryTelecommunications
FoundedApril 5, 1999; 22 years ago (1999-04-05)
Headquarters
Nairobi
,
Kenya
Key people
Eddy Njoroge
Chairman[1]
Steven Evans
Executive Vice Chairman[2]
Mugo Kibati
Chief Executive Officer[3]
Kris Senanu
Managing Director[4]
ProductsTelecommunications services
Internet services
RevenueKES 40 billion (2010)
OwnerHelios Investment Partners (60%)
Government of Kenya (40%)
Number of employees
1,400 (2018)
WebsiteHomepage

Telkom Kenya is an integrated telecommunications provider in Kenya. It was previously a part of the Kenya Posts and Telecommunications Corporation (KPTC) which was the sole provider of both postal and telecommunication services. The company was established as a telecommunications operator in April 1999, after the split of KPTC into the Communications Commission of Kenya (CCK), the Postal Corporation of Kenya (POSTA) and Telkom Kenya. The company is 60 per cent owned by Helios Investment Partners, with the remaining stake held by Kenyans through the Government of Kenya.[5]

Services[]

Telkom Kenya provides integrated telecommunications solutions to individuals, Small and Medium-sized Enterprises (SMEs), Government and large corporates in Kenya, drawing from a diverse solutions suite that includes voice, data, mobile money as well as network services. Powered by its vast fibre optic infrastructure, it is also a major provider of wholesale, carrier-to-carrier traffic within the country and the region.[6]

The company operates and maintains the infrastructure over which Kenya's various internet service providers operate. As of 2004, most internet service was provided via dial-up service. Jambonet, an important Kenyan ISP, is a subsidiary of Telkom Kenya. It also offers mobile GSM voice and high speed internet services under the Orange Kenya brand, in which it is the 3rd in market share after Safaricom and Airtel Kenya.[7] In March 2018, the company resumed a mobile-money service that it had dropped in 2017. Referred to as T-kash, the service is a direct competitor to the M-pesa service, offered by market-leader Safaricom.[8]

History[]

In 2007 France Télécom (now Orange S.A.) acquired 51% of Telkom Kenya's shares at a cost of US$390 million.[9] In November 2012, the shareholding structure changed due to a decision by the Kenyan government to convert its shareholder loans at that time, into equity in order to ease Telkom Kenya's debt burden.[10] It was subsequently confirmed that the Kenya government would retain 40% shareholding down from 49% with the remaining shares held by France Télécom.[11] In January 2013, France Télécom increased its stake in Telkom Kenya to 70% as a consequence of the government's failure to provide its full portion of the 2012 funding.[12] In June 2017, the firm was re-branded from "Orange Kenya" to "Telkom Kenya".[13]

Past shareholding[]

On November 9, 2015, Helios Investment Partners announced that they were going to purchase France Télécom's entire stake in Telkom Kenya.[14][15]

Current shareholding[]

Subsequent to the agreement to buy, Helios negotiated with the Kenyan government to own 40 percent in the new joint venture, with the investment firm retaining 60 percent.[16] In June 2016, final regulatory approval was received for the deal to proceed.[17] The current shareholding is as depicted in the table below.[1]

Telkom Kenya Stock Ownership
Rank Name of Owner Percentage Ownership
1 Jamhuri Holdings Limited 60.0
2 Government of Kenya 40.0
Total 100.00

1 - Jamhuri Holdings Limited is a special investment vehicle, fully owned by Helios Investment Partners.

See also[]

References[]

  1. ^ Jump up to: a b Okuttah, Mark (12 June 2016). "State pumps Sh12 billion into Telkom after Helios deal". Business Daily Africa. Nairobi. Retrieved 13 June 2016.
  2. ^ Okuttah, Mark (15 August 2016). "PE firm Helios selects vice chairman to Telkom board". Business Daily Africa. Nairobi. Retrieved 15 August 2016.
  3. ^ Otieno, Bonface (9 November 2018). "Telkom appoints Mugo Kibati as CEO". Daily Nation. Nairobi. Retrieved 9 November 2018.
  4. ^ BizTech Africa (30 June 2016). "Kris Senanu to lead Telkom Kenya Enterprise Division". Johannesburg: BizTech Africa. Retrieved 9 November 2018.
  5. ^ PK (4 June 2016). "The History of Postal Corporation of Kenya". Nairobi: Postal Corporation of Kenya (PK). Retrieved 4 June 2016.
  6. ^ "Telkom Kenya Limited | Telecommunications provider in Kenya". www.telkom.co.ke. Retrieved 2018-08-13.
  7. ^ CommsUpdate (24 March 2016). "Airtel Kenya plans 4G launch by year-end". Telegeography.com. Retrieved 4 June 2016.
  8. ^ Ngugi, Brian (12 March 2018). "Telkom returns to mobile money business with T-kash". Business Daily Africa. Nairobi. Retrieved 12 March 2018.
  9. ^ News (16 November 2007). "Orange to buy 51% of Telkom Kenya". Telecompaper.com. Retrieved 4 June 2016.
  10. ^ Mutegi, Mugambi (22 November 2012). "State turns its Telkom Kenya loan into equity". Business Daily Africa. Nairobi. Retrieved 4 June 2016.
  11. ^ Omondi, Michael (27 November 2012). "Treasury's stake in Telkom Kenya cut after debt swap". Business Daily Africa. Retrieved 4 June 2016.
  12. ^ Nyabiage, Jevans (12 January 2013). "Government Loses Ownership Grip In Telkom Kenya". The Standard (Kenya). Nairobi. Retrieved 4 June 2016.
  13. ^ Mumo, Muthoki (6 June 2017). "Telkom bets on dominance report in turnaround plans". Business Daily Africa. Nairobi. Retrieved 7 June 2017.
  14. ^ OSA (9 November 2015). "Orange signs an agreement with Helios Investment Partners for the sale of its stake in Telkom Kenya" (PDF). Paris: Orange S.A. (OSA). Retrieved November 10, 2015.
  15. ^ Ochieng, Lilian (9 November 2015). "Helios buys France Telecom's stake at Telkom Kenya". Daily Nation. Nairobi. Retrieved 4 June 2016.
  16. ^ Anyanzwa, James (6 March 2016). "Kenya gets 10 percent Telkom stake for free as part of Helios' deal". Business Daily Africa. Nairobi. Retrieved 4 June 2016.
  17. ^ Okuttah, Mark (4 June 2016). "Firm gets the nod to sell 70 percent stake in Telkom". Business Daily Africa. Nairobi. Retrieved 4 June 2016.

External links[]

Retrieved from ""