Kenyans telco industry regulator – the Communications Authority (CA) has suspended the ongoing merger between the second and third largest telco operators upon graft allegations currently being investigated by the Ethics and Anti-Corruption Commission (EACC).

Preceding to the merger talks, Telkom Kenya and the treasury were being investigated how the government sold part of its stake to French firm Orange. Orange which formed part of the GSM division at the Orange-Telkom was later sold to UK firm Helios Investment, which currently holds 60 percent stake while the Government of Kenya holds 40 percent.

In a separate development, several analysts had raised concerns on how the Telkom Kenya and Airtel Kenya deal was brokered prompting the anti-corruption commission to investigate. Telkom Kenya had sort the Authority’s thumbs up to merge its mobile, enterprise and carrier services with Airtel forming a single joint venture company to be named Airtel-Telkom.

But after the recent allegations, the communications Authority had informed the two mobile telecommunications technology companies that it would not grant them approval until the conclusion of investigations by the Ethics and Anti-Corruption Commission (EACC).

Speaking on the development, the CA director in charge of communications and public affairs, Christopher Wambua said the body had advised both parties that approval shall only proceed upon completion of current investigations by EACC and fulfillment of all the conditions set out by the authority. Wambua also confirmed receiving a letter from the EACC requesting for the merger to be suspended.

Telkom Kenya had put on sale properties across the country accumulating to KSh3.87 billion to raise cash for the merger. Before Safaricom, Telkom Kenya was the telco operator in the country and as so, it has a massive amount of properties across Kenya and just recently sold 723 masts for a whooping Sh17.16 billion to American Tower Company (ATC).

Ever since the state relinquished its grip on the firm, there has been scanty details on exactly who owns Telkom Kenya and now the anti-graft body is seeking more information on the same. In a letter to the Communications Authority, Mr Mbarak from EACC is seeking for more detailing with all original documents on Telkom Kenya’s shareholding and terms of the ongoing merger with Airtel Kenya.

EACC is looking for original documents including all the licenses Telkom had been issued and a letter granting the government permission to cede shareholding in the initial entry of France Telecom.

Local airlines operator – Jambojet and Little cab have signed a deal that will see customers utilizing both services get discounted taxi rates in a promotion expected to last for the next three months. Jambojet has some of the most cost friendly airline ticket rates locally and currently operates on several routes across the region. While Little cab has so far proved a worthy competitor since it was unveiled locally to the likes of Uber and Bolt.

Little cab riders will get a Ksh150 discount on cab rides in any of the three cities it currently offers services – Nairobi, Mombasa and of course Kisumu. And while speaking on the development, Jambojet’s CEO, Mr. Allan Kilavuka confirmed the deal and added that it aimed to enrich customers travel experience, by convenience and affordability.

The partnership is also expected to benefit Little Cab by expanding its market reach while at the same time growing its customer base and cut out on competition. Taxy hailing apps have become popular in Kenya especially considering they utilize mobile technology to offer the most affordable and convenient rides across major cities.

Jambojet operates a no-frills model where passengers enjoy lower fares but have to pay for extras such as food, baggage as well as seat choices and legroom.  To keep the cost of a seat as low as possible, the airline focuses on getting you from point A to point B for as cheaply as possible. The airline is currently flying to Nairobi, Mombasa, Kisumu, Eldoret, Malindi, Ukunda, and Entebbe.

Little cab is running the campaign on Jambojet’s De Havilland Dash 8 Q400 aircraft, to have a wider reach, with hopes that the brand will influence their transport decisions when they alight the airline.

KCB MPESA borrowers will effectively pay more for their mobile loans after the lender adjusted interest rates upwards from 4.08 percent to 7.5 percent. The platform has experienced an impressive following due to the attractive interest rates as well as convenience for mostly business owners who needed short term loans to boost their businesses. KCB MPESA has mostly served as a cheaper alternative to Mshwari which is also available on Safaricom’s mobile wallet platform.

Kenyan’s using the platform were surprised on the new development with some arguing the lender did not utilize the platform well to shield “good” borrowers from such hikes. In some instances, you’d imagine defaulters to be subjected to such hikes while those in good books enjoying some form of assurance.

The interest hike is staggeringly high especially for those with higher limits and as such if you borrowed Ksh. 40,000 under the previous rates, you’d be expected to pay back with an interest of Ksh. 1,632 compared to the new regime rates where borrowing a similar amount means you’ll have to pay Ksh. 3,001.60 instead.

KCB MPESA was viewed as an effective option to MPESA customers in need of short term loans at an attractive low interest rate. Just like Mshwari, KCB MPESA was embedded within Safaricom’s mobile money technology where users weren’t required to download a separate app from the store to access loans. It basically relied on the same platform users utilized to send money, pay for items and so forth.

Message Notifications to Customers

KCB had communicated the changes to current customers via text messages informing them on the implications to both defaulters and those on good books.

Lenders utilizing mobile platforms have seen their products grow impressively that has caused a major spur in the sector with the likes of banks and saccos joining in on the bandwagon. Some of the products that are performing well in the segment include; Tala, Branch, M-shwari among others.

While CBA’s Mshwari charges have remained at a 7.5 per cent interest, Barclays’ Timiza (6.17 per cent) KCB MPESA always seemed as the go to solution with almost half the rate. Recently, the Central Bank of Kenya partnered with a few lenders to unveil Stawi – a mobile loan facility that charges interest of nine per cent, plus facility fees of four per cent, insurance cost of 0.7 per cent and excise duty at 20 percent

Home internet market segment just got a little heated after Safaricom announced plans to halve prices for new customers joining its home fiber network. In a bid to popularize the uptake of its home internet solution, Kenyan’s opting into Safaricom’s home fiber within the next two months (August and September) will realize a 50 percent discount.

Speaking on the promotion, Safaricom’s new acting Chief Executive Michael Joseph noted that the home fiber solution that began about two years back was enabling customers to have a new experience in home internet. He also acknowledged the telecom giant has unveiled a 50 percent discount to appeal to those who would like to experiment and try out the service. Lastly, Michael Joseph compared the impressive growth of unlimited entertainment, working at home, home CCTV among other emerging customer needs that require stable internet connection.

How new Customers can get 50 percent discount on Safaricom’s Home Fiber

• As per the promotion, new customers to qualify for the offer must subscribe to the product within the next two months (August and September).
• New Customers Must Dial *400# and choose “Get Safaricom Home Fibre”.
• The Bronze package will entitle customers to a one-month half-price offer while
• New customers on the Silver, Gold, and Diamond packages will enjoy two months at the 50 percent off pricing.

Zuku is currently the market leader in connected internet within the country but has increasingly been facing stiff competition from Safaricom which enjoys a massive capital at its disposal. The likes of Jamii Telkom which entered the segment a little earlier have already been over-taken by Safaricom which not only has appealing prices but rapidly expanding its network within the country.

Safaricom is also continuing to extend its fibre coverage to more than 15,000 additional homes across the country within the next two months. Some of the areas to be covered include parts of Kisumu and Thika, Kizingo in Mombasa, and Kinoo, Komarock and Ruaka in Nairobi. The service currently reaches more than 300,000 homes across the country, with more than 107,000 customers connected across Nairobi, Mombasa, Eldoret, Kisumu, Nakuru, Nyeri and Thika.

Safaricom Home Fiber Prices and Offers

*Bronze customers to enjoy 50% off for one month at KES. 1,450