Barre did not anticipate the current telecoms sector climate to produce major changes in the near future. “Our performance has been below expectations,” says Barre.
Telkom Kenya used to be the only telecommunications company with a profitable monopoly, but in recent years the company has been struggling due to the country’s price wars that knocked down the telecom operators’ profits. Currently France Telecom owns about 51% of Telkom Kenya.
Barre says the current business climate in Kenya has hurt the company’s prospects for profits ahead of 2013. “When we took over Telkom Kenya, which was in bad shape, we anticipated breaking even in three years, but we have now realised it will take longer,” says Barre.
Telkom Kenya announced the appointment of Eddy Njoroge, a top businessman in Kenya as the new chairman. Part of his role will be to turn Telkom Kenya’s profits around and bring the company back to its former position.