Telkom Kenya Takes Out €35-Million Loan To Expand Network

Kenya’s third-biggest telecoms operator, Telkom Kenya has received a loan of €35-million (approximately US$40 million) from the European Investment Bank (EIB). The company plans to use the credit to expand its mobile and data services and expects an increase in market share.

The operator has thus far remained tight-lipped about exactly how it intends to achieve goals using this loan or contractors or relevant timeframes, but according to the terms of the loan agreement the company plans to increase its 3G and 4G coverage, and also invest in its Fibre-to-the-Building (FTTB) network.

Mugo Kibati, Telkom’s CEO, said that the strategic support from the EIB would give much-needed momentum to Telkom's data network expansion, that has enabled Telkom to consistently boost indoor coverage, expand its 4G network and optimise its 3G network. Kibati believes that with all this in place, Telkom Kenya’s capacity to handle mobile data traffic in response to its ever-growing customer demand, will be boosted.

According to the latest figures from the Communications Authority, Telkom Kenya, which is jointly owned by the government of Kenya and Helios Investment (60%), controls about 9% of the local telecoms market with approximately 4.1 million subscribers.

Telkom recently started a data price war with its competitors, ultimately forcing the industry's dominant player Safaricom (which controls approximately 70% of the market) to decrease the cost of its data.

Ambroise Fayolle, the Vice President of the EIB, said that this loan would also benefit its fixed broadband network; a service which is generally viewed as a basic need for businesses to be competitive and competent in an international market. Fayolle added that EIB’s support of Telkom Kenya would help to provide millions of people with access to data networks, which nowadays has become a basic need for doing business in a connected world.

Credit: This article originated from


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