Telkom Kenya privatised by 2006

Johannesburg, 16 May 2005

Kenya`s incumbent telecoms operator, Telkom Kenya, is expected to be privatised by June 2006, according to outgoing MD, John Waweru.

In an interview with the local press, Waweru claimed it would be impossible to achieve privatisation within the next six months, but that if the corporation worked hard, it could be achieved inside a year.

"Privatisation is not debatable, and the only question is how and who will partner the government. Privatisation can happen either through an initial public offer on the Nairobi Stock Exchange or through partnership with an investor," he says.

Waweru, who was handing over the reins to Sammy Kirui, nonetheless remained non-committal on the method that the government would choose to offload shares.

Kirui - who was recently sent on indefinite leave from his post as director-general of the Kenyan regulator - has laid out details of an interim programme for the corporation.

The programme will involve continuing with the current reform plan, which includes the laying of a Sh5 billion (R400 million) terrestrial fibre optic between Nairobi and Mombasa, to activate the parastatal`s provision of Internet and fixed wireless services.

The new MD said the government has consistently pushed the idea of Telkom Kenya`s privatisation, but that it first seeks to modernise the corporation, in order to fetch higher returns from the deal.

Kirui says there are new products and services due to be launched in the next 90 days that will help to enhance Telkom Kenya`s position in the marketplace.

He also stated that in order to carry out its privatisation strategy, the corporation will retrench 12 000 employees, which will in turn save the business Sh400 million in annual salary.