Telkom Kenya

Last updated
Telkom Kenya
Company type Public Private Partnership
Industry Telecommunications
FoundedApril 5, 1999;25 years ago (1999-04-05)
Headquarters
Nairobi
,
Kenya
Key people
Eddy Njoroge
Chairman [1]
Mugo Kibati
Chief Executive Officer [2]
ProductsTelecommunications services
Internet services
Revenue KSh.40 billion/= (2010)
Website Official website OOjs UI icon edit-ltr-progressive.svg

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. As of 2023, the company is fully owned the Government of Kenya. [3]

Contents

Services

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 Telkom brand, in which it is the 3rd in market share after Safaricom and Airtel Kenya. [4] In 2018, it was announced [5] that Airtel Kenya was considering a merger with Telkom Kenya. 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. [6]

History

In 2007 France Télécom (now Orange S.A.) acquired 51% of Telkom Kenya's shares at a cost of US$390 million. [7] 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. [8] It was subsequently confirmed that the Kenya government would retain 40% shareholding down from 49% with the remaining shares held by France Télécom. [9] 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. [10] In June 2017, the firm was re-branded from "Orange Kenya" to "Telkom Kenya". [11]

Past shareholding

On November 9, 2015, Helios Investment Partners announced that they were going to purchase France Télécom's entire stake in Telkom Kenya. [12] [13]

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. [14] In June 2016, final regulatory approval was received for the deal to proceed. [15] In October 2022, the Kenyan government acquired the remaining 60% of Telkom Kenya from Helios in a $50.4 million USD deal. At that time, the Kenyan government owned 100 percent of Telkom Kenya. [16]

Current shareholding

In October 2023, Infrastructure Corporation of Africa LLC (ICA), based in the United Arab Emirates was selected to acquire the 60 percent shareholding, previously owned by Helios Investment Partners. Subject to all the approvals and documentation, the shareholding will look as depicted in the table below. [17]

Telkom Kenya Stock Ownership
RankName of OwnerDomicilePercentage Ownership
1Infrastructure Corporation of Africa LLC United Arab Emirates
60.0
2 Government of Kenya Kenya
40.0
Total
100.0

See also

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References

  1. ↑ Mark Okuttah (28 June 2020). "Telkom Kenya owners pump Sh30bn after Helios deal". Daily Nation . Nairobi, Kenya. Retrieved 5 October 2023.
  2. ↑ Bonface Otieno (9 November 2018). "Telkom appoints Mugo Kibati as CEO". Daily Nation . Nairobi, Kenya. Retrieved 9 November 2018.
  3. ↑ PK (4 June 2016). "The History of Postal Corporation of Kenya". Nairobi: Postal Corporation of Kenya (PK). Retrieved 4 June 2016.
  4. ↑ CommsUpdate (24 March 2016). "Airtel Kenya plans 4G launch by year-end". Telegeography.com. Retrieved 4 June 2016.
  5. ↑ "Telkom Kenya and Airtel seek merger to take on Safaricom: sources". Reuters. 2018-04-10. Retrieved 2022-01-20.
  6. ↑ Ngugi, Brian (12 March 2018). "Telkom returns to mobile money business with T-kash". Business Daily Africa . Nairobi. Retrieved 12 March 2018.
  7. ↑ "Orange to buy 51% of Telkom Kenya". Telecompaper.com. 16 November 2007. Retrieved 4 June 2016.
  8. ↑ Mutegi, Mugambi (22 November 2012). "State turns its Telkom Kenya loan into equity". Business Daily Africa . Nairobi. Retrieved 4 June 2016.
  9. ↑ Omondi, Michael (27 November 2012). "Treasury's stake in Telkom Kenya cut after debt swap". Business Daily Africa . Retrieved 4 June 2016.
  10. ↑ Nyabiage, Jevans (12 January 2013). "Government Loses Ownership Grip In Telkom Kenya". The Standard (Kenya) . Nairobi. Retrieved 4 June 2016.
  11. ↑ Muthoki Mumo (6 June 2017). "Telkom bets on dominance report in turnaround plans". Business Daily Africa . Nairobi, Kenya. Retrieved 7 June 2017.
  12. ↑ OSA (9 November 2015). "Orange signs an agreement with Helios Investment Partners for the sale of its stake in Telkom Kenya" (PDF). Orange S.A. (OSA). Paris, France. Retrieved 10 November 2015.
  13. ↑ Lilian Ochieng (9 November 2015). "Helios buys France Telecom's stake at Telkom Kenya". Daily Nation . Nairobi, Kenya. Retrieved 4 June 2016.
  14. ↑ 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.
  15. ↑ Okuttah, Mark (4 June 2016). "Firm gets the nod to sell 70% percent stake in Telkom". Business Daily Africa . Nairobi. Retrieved 4 June 2016.
  16. ↑ Alan Burkitt-Gray (5 October 2022). "Kenya snaps up Helios's 60% of Telkom for just $50 million". Capacity Media. Johannesburg, South Africa. Retrieved 9 November 2022.
  17. ↑ Charles Mwaniki (5 October 2023). "Emirati company gets majority stake in Telkom on Helios exit". Business Daily . Nairobi, Kenya. Retrieved 5 October 2023.
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