• When Collymore announced his exit from the company, the board interviewed candidates, including a senior Kenyan banking executive, before settling on an unidentified foreign national from within the Vodafone group to succeed him.
• The government however objected the move and has been pushing for the appointment of a Kenyan CEO to replace Collymore as adopted at a shareholder meeting in 2017.
Safaricom has dismissed claims that it gave in to demands and pressure to have a Kenyan run the company.
Interim Chief Executive Officer Michael Joseph said the newly appointed CEO Peter Ndegwa was given the chance as a way of natural progression rather than giving in to demands.
Micheal Joseph was responding to questions from Citizen TV's Yvone Okwara.
When Collymore announced his exit from the company, the board interviewed candidates, including a senior Kenyan banking executive, before settling on an unidentified foreign national from within the Vodafone group to succeed him.
The government however objected the move and has been pushing for the appointment of a Kenyan CEO to replace Collymore as adopted at a shareholder meeting in 2017.
ICT CS Joe Mucheru said there had been no formal communication from the company on Collymore’s successor.
Mucheru said he would be surprised if the board could not find a Kenyan to run the company, adding that part of Collymore’s remit was to groom a local successor.
“I would be very surprised if they can’t find a Kenyan. It will be hard for them to justify, what is so special about telecoms?” Mucheru told Reuters.
The news of Collymores exit attracted uproar on social media, with Kenyans on Twitter (KOT) predicting the downfall of the company if a Kenyan citizen is selected to lead it.
Collymore took a nine-month medical leave in late 2017 after battling cancer. During his tenure, Safaricom’s share price has increased by more than 400 per cent from an initial offer price of Sh5.
But Micheal Joseph Said, "I wouldn't say we gave in to demands but becuase it is the right thing to do especially after 19 years of safaricom. By now a Kenyan should run the company".
Michael Joseph is a Kenyan-American businessman who was the founding CEO of Safaricom Limited, the largest telco in Kenya.
Currently, he is acting as the interim CEO after the death of former CEO Bob Collymore.
He is also the Chairman of Kenya Airways.
Yvonne: Did you give in to demands to have a Kenyan run Safaricom?
— Citizen TV Kenya (@citizentvkenya) October 24, 2019
Michael Joseph: I wouldn’t say we gave in to demands.I think it is the right thing to do. I think after 19 years a Kenyan should be running Safaricom.#Tonight@YvonneOkwara pic.twitter.com/rVctWfboVm
In the interview, Michael Joseph said it is true there has been pressure to get a Kenyan to replace Collymore.
There was pressure and it has always been there people asking why not a kenyan while others said why Kenyan and not just have the best person for the job," he said.
He added, "This is the right time to define the right kenyan for the job".
Micheal Joseph said Safaricom is not jus an ordinary company but has a specific DNA.
"It is not just about voice, data and SMS company but touches on financial services and impact communities in different corporate social resposbibilities. So this is a big company that touches on every facet of the Kenyan society.
Safaricom on Thursday announced that it had appointed Peter Ndegwa as the new Chief Executive Officer.
The Safaricom PLC Board of Directors in a statement Ndegwa's appointment will take effect from April 1, 2020.
Ndegwa joins Safaricom from Diageo PLC where he is the Managing Director of Diageo Continental Europe.
"Peter brings a wealth of experience in General Management, Commercial and Business Strategy, Sales and Finance Operations, having spent over 25 years in various roles within the Financial Services and Fast-Moving Consumer Goods (FMCG) sectors in Africa and Europe," Safaricom said in a statement by Chairman Nicholas Ng'ang'a.
Ndegwa will take over from Michael Joseph who made a comeback in an acting capacity at the helm of East Africa's largest telco in July following the death of Bob Collymore.
Collymore, passed away in June after battling cancer. The late Collymore had himself took over from Joseph as Safaricom CEO in November 2010.
"We are confident that Peter will carry on our vision of transforming lives while keeping us focused on meeting our customers’ needs and holding us to our new commitment of being simple, transparent and honest," the statement from Safaricom read.