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Telkom Kenya workers push for state bailout after failed strategic investor bid

Since 2020 the government has struggled to secure an investor for the troubled Telco

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by JACKTONE LAWI

Business26 June 2025 - 07:34
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In Summary


  • Telkom has previously sought external investment from companies like France Telecom (Orange) and Helios Investment Group.
  • However, these partnerships did not result in significant improvements for the company.

Telkom Plaza in Nairobi

Telkom Kenya employees are increasingly growing frustrated over the long delays in securing a strategic investor, a situation they say has plunged the state-owned telecoms firm into a crisis.

Since 2020 the government has struggled to secure an investor for the troubled Telco, as promises of bringing in a new investor to revamp Telkom Kenya have gone unfulfilled.

According to the Communication Workers Union of Kenya (COWU-K), the uncertainty has derailed implementation of two fully negotiated CBAs, with the explanation being that the agreements were tied to the arrival of the investor.

“Telkom Kenya is a national asset, unless immediate and deliberate interventions are undertaken, we are headed towards a national communications crisis and the eventual collapse of this historic institution,” said COWU-K General Secretary Benson Okwaro.

“We are now entering the fifth year of waiting, employees remain in uncertainty, hope has faded, and anxiety continues to mount.”

In 2023 the National Treasury revealed that a United Arab Emirates-based firm was to take up a majority stake in Telkom Kenya from London's Helios Investment Partners, marking the latest twist in the deal room of the loss-making telco.

In what appeared like hope at last for the troubled Telco, the government had settled on Infrastructure Corporation of Africa LLC (ICA) as the new majority shareholder in Telkom Kenya.

Telkom has previously sought external investment from companies like France Telecom (Orange) and Helios Investment Group.

However, these partnerships did not result in significant improvements for the company.

Both investors eventually exited the market, citing challenges.

The government is now cautious about finding a strategic investor who can truly make a positive impact and address the underlying issues faced by Telkom Kenya.

However, the employee’s union now argue that there is no lifeline for Telkom Kenya.

The union says many employees have reportedly stuck in the same roles for more than a decade. Okwaro says promotions, skills development initiatives, and job reclassifications have all stalled, contributing to growing staff demoralization.

“Professionals with vast experience and a passion for serving the Kenyan public have been reduced to spectators in their own careers. If the strategic investor is no longer in the picture, say so. If they are still coming, give us a timeline,” Okwaro said.

“A government bailout or revival package may now be the only option to stabilize this company, safeguard national interests, considering that company provides the important connection and to protect jobs.”

In a strongly worded statement issued Tuesday, the Communication Workers Union of Kenya (COWU-K) called on the Government of Kenya, the Ministry of Information, Communications and the Digital Economy, and Telkom Kenya’s management to urgently address what they termed a “critical threat” to the company’s survival and the welfare of its employees.

COWU-K urged Cabinet Secretary for ICT William Kabogo to take personal and decisive action to rescue the company, warning that its collapse would endanger national infrastructure and jeopardize thousands of jobs.

The union also called for candid engagement from Telkom Kenya management and its board.

Once the dominant telecom provider in the country, Telkom Kenya has struggled to compete with rivals Safaricom and Airtel, particularly following disruptions linked to the switching of ATC Sites across the country.

COWU-K says it remains willing to work with stakeholders to revive the company — but insists that time is running out.

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