Telkom Kenya

{{Short description|Kenyan telecommunications company}}

{{About|the Kenyan telecommunications provider||Telkom (disambiguation){{!}}Telkom|}}

{{Infobox company

| name = Telkom Kenya

| logo =

| logo_size =

| type = Public private partnership

| industry = Telecommunications

| key_people = Eddy Njoroge
(chairman){{cite web|url=https://nation.africa/kenya/business/telkom-kenya-owners-pump-sh30bn-after-helios-deal-1207562 |title=Telkom Kenya owners pump Sh30bn after Helios deal |work=Daily Nation | date=28 June 2020 |author=Mark Okuttah |access-date=5 October 2023 |location=Nairobi, Kenya}}
Mugo Kibati
(chief executive officer){{cite web|date=9 November 2018 | url=https://www.nation.co.ke/business/Telkom-appoints-Mugo-Kibati-as-CEO/996-4844466-84sod1/ |access-date=9 November 2018 | title=Telkom appoints Mugo Kibati as CEO |author=Bonface Otieno | work=Daily Nation |location=Nairobi, Kenya}}

| products = Telecommunications services
Internet services

| revenue = KSh.40 billion/= (2010)

| foundation = {{Start date and age|1999|4|5}}

| location_city = Nairobi

| location_country = Kenya

| homepage = {{official website}}

}}

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 by the Government of Kenya.{{cite web|url=http://posta.co.ke/site/history/|title=The History of Postal Corporation of Kenya|accessdate=4 June 2016|date=4 June 2016|publisher=Postal Corporation of Kenya (PK)|author=PK |location=Nairobi}}

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.{{cite web|title=Airtel Kenya plans 4G launch by year-end|date=24 March 2016 |author=CommsUpdate | url=https://www.telegeography.com/products/commsupdate/articles/2016/03/24/airtel-kenya-plans-4g-launch-by-year-end/ |accessdate= 4 June 2016 | publisher=Telegeography.com}} In 2018, it was announced{{Cite news|date=2018-04-10|title=Telkom Kenya and Airtel seek merger to take on Safaricom: sources|language=en|work=Reuters|url=https://www.reuters.com/article/us-kenya-bharti-airtel-idUSKBN1HH0UR|access-date=2022-01-20}} 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.{{cite web|access-date=12 March 2018 | url=https://www.businessdailyafrica.com/corporate/companies/Telkom-back-mobile-money-T-kash-launch/4003102-4338022-wpjypgz/index.html |title=Telkom returns to mobile money business with T-kash |date=12 March 2018 |newspaper=Business Daily Africa |first=Brian |last=Ngugi |location=Nairobi}}

History

In 2007 France Télécom (now Orange S.A.) acquired 51% of Telkom Kenya's shares at a cost of US$390 million.{{cite web|accessdate=4 June 2016| url=http://www.telecompaper.com/news/orange-to-buy-51-of-telkom-kenya--579220 |date=16 November 2007 |author= |publisher=Telecompaper.com|

title=Orange to buy 51% of Telkom Kenya}} 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.{{cite web|last=Mutegi |first=Mugambi |date=22 November 2012|url=http://www.businessdailyafrica.com/Corporate-News/State-turns-its-Telkom-Kenya-loan-into-equity-/-/539550/1627052/-/em8myu/-/index.html | title=State turns its Telkom Kenya loan into equity |newspaper=Business Daily Africa|accessdate=4 June 2016|location=Nairobi}} It was subsequently confirmed that the Kenya government would retain 40% shareholding down from 49% with the remaining shares held by France Télécom.{{cite web|last=Omondi |first=Michael|newspaper=Business Daily Africa| url=http://www.businessdailyafrica.com/Treasury-stake-in-Telkom-Kenya-cut-after-debt-swap-/-/539552/1630646/-/sf1spxz/-/index.html |title=Treasury's stake in Telkom Kenya cut after debt swap |date=27 November 2012| accessdate=4 June 2016}} 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.{{cite web|

last=Nyabiage |first=Jevans |accessdate=4 June 2016 |location=Nairobi | url=http://www.standardmedia.co.ke/business/article/2000074810/government-loses-ownership-grip-in-telkom-kenya|title=Government Loses Ownership Grip In Telkom Kenya |newspaper=The Standard (Kenya)|date=12 January 2013}} In June 2017, the firm was re-branded from "Orange Kenya" to "Telkom Kenya".{{cite web| title=Telkom bets on dominance report in turnaround plans | url=http://www.businessdailyafrica.com/corporate/Telkom-bets-on-dominance-report-in-turnaround-plans/539550-3958654-wltgqz/index.html |work=Business Daily Africa |date=6 June 2017 |author=Muthoki Mumo |access-date=7 June 2017 |location=Nairobi, Kenya}}

Past shareholding

On November 9, 2015, Helios Investment Partners announced that they were going to purchase France Télécom's entire stake in Telkom Kenya.{{cite web|date=9 November 2015|work=Orange S.A. (OSA) |

url=http://www.orange.com/en/content/download/33241/1085670/version/2/file/CP_Orange_TKL_Helios_09%2011%2015_VA.pdf |title = Orange signs an agreement with Helios Investment Partners for the sale of its stake in Telkom Kenya |access-date=10 November 2015 |last=OSA |

location=Paris, France}}{{cite web| url=http://www.nation.co.ke/business/Private-equity-firm-Helios-takes-over-Telkom-Kenyas-stake-/-/996/2949876/-/10mmew2z/-/index.html |work=Daily Nation |access-date=4 June 2016 |date= 9 November 2015 |title=Helios buys France Telecom's stake at Telkom Kenya |author=Lilian Ochieng |

location=Nairobi, Kenya}}

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.{{cite web|

access-date=4 June 2016| url=http://www.businessdailyafrica.com/Corporate-News/French-give-Kenya-10pc-of-Telkom-to-seal-Helios-takeover-/-/539550/3104956/-/et8qgrz/-/index.html| title=Kenya gets 10 percent Telkom stake for free as part of Helios' deal|

first= James|last=Anyanzwa |newspaper=Business Daily Africa| location=Nairobi|date=6 March 2016}} In June 2016, final regulatory approval was received for the deal to proceed.{{cite web|accessdate=4 June 2016| url=http://www.businessdailyafrica.com/Corporate-News/Firm-gets-the-nod-to-sell-70pc-stake-in-Telkom-/-/539550/3232260/-/84airxz/-/index.html |title=Firm gets the nod to sell 70% percent stake in Telkom|first=Mark |

date=4 June 2016 |last=Okuttah |location=Nairobi|newspaper=Business Daily Africa}} 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.{{cite web |

url=https://www.capacitymedia.com/article/2app0f7zt5lez8i2f083k/news/kenya-snaps-up-helioss-60-of-telkom-for-50-million |title=Kenya snaps up Helios's 60% of Telkom for just $50 million |date=5 October 2022 |author=Alan Burkitt-Gray |work=Capacity Media | access-date=9 November 2022 |location=Johannesburg, South Africa}}

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.{{cite web|title=Emirati company gets majority stake in Telkom on Helios exit |work=Business Daily |date=5 October 2023 |author=Charles Mwaniki |access-date=5 October 2023 | url=https://www.businessdailyafrica.com/bd/corporate/companies/emirati-company-gets-majority-stake-in-telkom-on-helios-exit--4390160 | location=Nairobi, Kenya}}

class="wikitable sortable" style="margin: 0.5em auto"

|+ Telkom Kenya stock ownership

! Rank !!Name of owner!!Domicile !!Percentage ownership

1Infrastructure Corporation of Africa LLCUnited Arab Emirates{{center|60.0}}
2Government of KenyaKenya{{center|40.0}}
Total{{center|100.0}}

See also

References

{{Reflist}}