August 21, 2018

Telkom unveils strategy to compete with Safaricom, Airtel Kenya

Telkom Kenya on Tuesday (6/06/17) changed its brand identity as part of a larger strategy to sharpen its competitive edge.

Orange rebranded to Telkom, 12 months after the exit of majority shareholder the Orange Group.

“The move is a commitment to gradually restoring Telkom’s relevance in Kenya’s social and economic dynamic to transform it to a viable market player in the telecommunications sector and a profitable national asset,” indicated the company chair Eddy Njoroge.

“The company’s Board takes full cognizance of the historical and economic importance of Telkom to the country and Kenyans,” he added.

The changing of the Telkom’s brand identity was in line with an agreement made when private equity firm Helios bought a majority stake in the company last year.

Helios Investment Partners bought the entire 70 per cent stake owned by Orange Group.

The Kenyan government owns 40 percent of the business.

Telkom’s chief technology officer, John Bororot:

“We are looking at a new era where Telkom Kenya will no longer be looked at as a ‘sleeping giant’, as has been the case, and our users and the market are about to witness a new entity.”

In April, Telkom Kenya had announced plans to replace Orange Money amidst its continued underperformance in the market.

In an interview, Telkom Kenya chief executive Aldo Mareuse indicated that the company would ditch the current platform because it couldn’t keep up with the competition.

“The current platform does not even allow the core products that M-Pesa has and obviously does not allow us to go further, which is what we want,” explained Mr Mareuse.

He added that the new platform would be more cost-efficient and would be launched at the same time the company rebrands before the end of the year.

Mareuse argued that the telecoms market would continue to be unprofitable for smaller operators because of the Government not regulating the industry.

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