Orange rules out total exit from Kenyan market

By Macharia Kamau

Kenya: Telkom Kenya has refuted reports that its major shareholder Orange is exiting the Kenyan telecommunications market. In a move seen to arrest panic among staff and suppliers, the firm’s Chief Executive Officer Mickael Ghossein insists that the operator is looking for a strategic partner without giving details.

Telkom Kenya seems to be adopting the strategy employed by yuMobile, which for about a year maintained that it was not exiting but rather looking for a partner to inject money into the business.

It was only recently, when the firm filed sale deeds with the Communications Commission of Kenya, that it was revealed that Essar Group is exiting the Kenyan telecoms market. yuMobile is selling its infrastructure to Safaricom while Airtel is reportedly eyeing the operator’s subscribers.

And yesterday, in a press briefing, Ghossein insisted that the French telecommunications giant, Orange, was only keen on raising capital through partnership. Putting on a brave face, Ghossein reckoned that the firm’s tight cash position was the reason Orange is searching for a strategic partner for the Kenyan operation but ruled out a total exit.

He said the company needed more resources than what is currently available and needed to bring more partners on board.

“Orange is looking for strategic partners to support our development in to the future but we are here to stay… we are here for business,” he said.

Ghossein did not give details as to whether the entry of new partners would alter the shareholding structure or the amount of money that the new partners would be expected to pump into the company.

The firm is 70 per cent owned by Orange and 30 per cent by the Government. Even though the firm has denied that the French are exiting, sources within Government say Orange has written to Treasury that it was in discussions with undisclosed entities for a possible sale.