Telkom Kenya to declare about 500 employees redundant to cut its operational costs

Telkom has today issued the requisite thirty-day notice to relevant authorities and company stakeholders, of an intended workforce-restructuring exercise. In the statutory notification to the Ministry of Labour, Telkom Kenya has indicated that it is considering declaring about 500 employees, redundant.

Since 2016, Telkom has successfully rebranded, invested KSh 14 Billion into its business to expand its network coverage, launched 4G services and its MFS platform, T-kash. Telkom has initiated a revamped strategy to become the credible number two; The Challenger in the market. Telkom Kenya has about 1200 employees.

“To enable Telkom to invest more into the growth and sustainability of its business, it must align its cost structure and skill-set with its Strategy. This requires Telkom to restructure its business, and as a result, this will impact the current and long-term needs of its workforce. This restructuring will enable Telkom to not only invest in its business but more importantly in its people,” the firm said in a statement.

According to CA’s latest stats for April to June 2018, Safaricom’s market share dropped by 1.6 percentage while Airtel and Telkom Kenya grew by 1.7 and 0.2 percentage points respectively. Equity Group’s Finserve Africa’s market share dropped by 0.1 percentage while that of Sema Mobile and Mobile Pay remained unchanged.

Safaricom’s subscribers currently stand at 29.8 million, Airtel Kenya’s at slightly over 9.74 million with Telkom Kenya coming in third with 3.9 million customers. Equitel is fourth with 1.9 million users. Telkom Kenya currently has 16,554 mobile money agents and a total of 63,023 active mobile money subscribers carrying out 78,504 transactions. In terms of the value of transactions, the Telkom Kenya’s mobile money platform – T-Kash – has handled Kshs 118 million with person-to-person transfers accounting for Kshs 13.9 million of the volumes moved.

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Telkom being in a fast-evolving sector, is adapting to market dynamics and changing consumer demands, to ensure that it delivers relevant and competitive products and services. This will also ensure that Telkom becomes a stronger player in the market and grows its relationship with its business partners.  

 

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