Telkom Kenya

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This article is about the Kenyan telecommunications provider. For other uses, see Telkom.
Telkom Kenya
Private company
Industry Telecommunications
Founded 1999
Headquarters Nairobi, Kenya
Key people
Eddy Njoroge
Chairman[1]
Aldo Mareuse
Chief Executive Officer[2]
Products Telecommunications services
Internet services
Revenue KES 40 billion (2010)
Owner Helios Investment Partners (60%)
Government of Kenya (40%)
Number of employees
~ 6,500 (2010)
Slogan We've got you talking.
Website Homepage

Telkom Kenya is the sole provider of landline phone services 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. In 1999 KPTC was split into the Communications Commission of Kenya (CCK), the Postal Corporation of Kenya (POSTA) and Telkom Kenya.[3]

Services[edit]

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 AirtelKenya.[4]

History[edit]

In 2007 France Télécom (now Orange S.A.) acquired 51% of Telkom Kenya's shares at a cost of US$390 million.[5] In November 2012, the shareholding structure changed due to a decision by the Kenyan government to convert the its shareholder loans into equity in order to ease Telkom Kenya's debt burden.[6] It was subsequently confirmed that the Kenya government would retain 40% shareholding down from 49% with the remaining shares held by France Télécom.[7] 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 2012 funding.[8]

Past shareholding[edit]

On November 9, 2015, Helios Investment Partners announced that they were going to purchase France Télécom's entire stake in Telkom Kenya.[9][10]

Current shareholding[edit]

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.[11] In June 2016, final regulatory approval was received for the deal to proceed.[12] 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[edit]

References[edit]

  1. ^ 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 (13 June 2016). "Helios names new Telkom Kenya CEO". Business Daily Africa. Nairobi. Retrieved 13 June 2016. 
  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. ^ News (16 November 2007). "Orange to buy 51% of Telkom Kenya". Telecompaper.com. Retrieved 4 June 2016. 
  6. ^ Mutegi, Mugambi (22 November 2012). "State turns its Telkom Kenya loan into equity". Business Daily Africa. Nairobi. Retrieved 4 June 2016. 
  7. ^ Omondi, Michael (27 November 2012). "Treasury's stake in Telkom Kenya cut after debt swap". Business Daily Africa. Retrieved 4 June 2016. 
  8. ^ Nyabiage, Jevans (12 January 2013). "Government Loses Ownership Grip In Telkom Kenya". The Standard (Kenya). Nairobi. Retrieved 4 June 2016. 
  9. ^ 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. 
  10. ^ Ochieng, Lilian (9 November 2015). "Helios buys France Telecom's stake at Telkom Kenya". Daily Nation. Nairobi. Retrieved 4 June 2016. 
  11. ^ 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. 
  12. ^ 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[edit]