Telkom Kenya announces new direction

Telkom Kenya announces new direction

Following the abrupt end to its planned merger with Airtel Kenya, Telkom Kenya’s leadership has announced what it calls the "bold decision to carve out a new direction" for the company.

There are a number of aims behind this move. One, says Telkom Kenya, is to better position the company’s infrastructure asset base and services to drive digital transformation within a number of sectors.

The company also intends to work on bridging the digital divide; in this context it refers to 4G and LTE expansion as well as the Loon project, which is bringing airborne base stations to remote areas.

The company also mentions its aim to create a future smart landing hub for the majority of submarine cables in the region, along with plans to upskill its employees. There will be no loss of jobs as a result of these changes, the company adds.

To pursue this vision, Telkom has restructured its service delivery units. The newly formed Telkom Consumer will focus on data, financial services, partnerships and digitisation of products and customer service channels. The role of the other new service delivery unit, Telkom Digital, is slightly less clearly defined but involves the use of the Internet of Things, cloud, big data and analytics to drive digital transformation.

This business restructuring, says Mugo Kibati, the company’s chief executive officer, will enable Telkom to sharpen its efficiencies in areas like service provision and customer experience, and also to partner more strategically with like-minded entities. 

He also refers to the company’s vast infrastructure asset base, terrestrial fibre and 4G network, all of which will no doubt come into play as the company attempts to reassert itself in the market after the failed merger.

However, although it is a powerful force in fixed communications, Telkom Kenya is well behind Safaricom and Airtel Kenya in the mobile communications market and mobile finance market.

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