Telkom Kenya has on Monday (5/06/17) announced plans to terminate its mobile money service Orange Money which has struggled to compete with other companies in the country.
According to authorities, the decision is also part of an agreement following the purchase of the company from France based Orange.
“Dear customer, in 30 days, Orange Money services will no longer be available and will not be accessible via the SMS menu and *144#,” Telkom said in a notice to its customers.
Telkom subscribers, who will still have their funds on the services from the July 5, will be required to withdraw the same from any Equity Bank branch.
The move by the company comes ahead of its corporate re launch on Tuesday with the operator’s management set to unveil a strategy of competing with industry rivals Safaricom and Airtel Kenya.
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.
He, however, rejected proposals to split M-Pesa from Safaricom, as had been proposed in a government commissioned report and by Gem Member of Parliament (MP) Jakoyo Midiwo.
Telkom Kenya has slightly over five million subscribers.