Telkom Kenya Orange’s parent company needs $345 million capital injection to get back on track. This comes after reports that France telecom owner of the telecom was planning to leave Kenya which was however dismissed by CEO Mickael Ghossien.
The company apparently needs the capital to fund its development with the year’s capital expenditure being $29 million. France Telecom acquired a 51 percent stake in Telekom Kenya at $311 million in 2008 giving it control of the firm formerly owned by the government.
The French owned telecommunications company had earlier announced an auction of 70 percent the company with plans to exit the Kenyan market largely dominated by Safaricom having the company earn low revenue from the industry.
With its operation getting weaker by year, the telcos revenue dropped to $112 million in 2013 from 202’s $117 million. This comes after Yu mobile exited the Kenyan market claiming unfair competition therefore minute revenues.