Telkom needs KES6bn govt investment as part of massive bailout

3 Jun 2013

The Kenyan government may be forced to pump KES6 billion (USD69.4 million) into stricken Telkom Kenya, the Daily Nation reports, lest the government see its stake in the telco dwindle even further. Telkom, which is co-owned by France Telecom-Orange and the state, is in a precarious financial position and needs a massive KES13.9 billion cash injection, around half of which is scheduled to come from government coffers.

As previously reported by TeleGeography’s CommsUpdate, in November 2012 FT-Orange opted to convert its Telkom Kenya debt into equity, cutting the government’s stake in the firm by nine percentage points in the process, and leaving the French giant with an enlarged 60% controlling stake.

Kenya, Orange Group, Telkom Kenya