France Telecom denies Kenya exit

France Telecom CEO, Stephane Richard (photo credit: AFP JEAN-PIERRE MULLER/AFP/Getty Images)

The main investor in Telkom Kenya, France Telecom, has denied reports that it plans to exit its Kenyan operation, as a result of registered losses.
The French telco has instead announced its long-term strategic commitment to the Kenyan market. According to Capital FM Kenya, media reports claimed that France Telecom was at loggerheads with government representatives over the shareholding structure of the Kenyan operator and was looking to be refunded for what it paid in Telkom Kenya.

However, a statement from the company read that the discussions are part of the acquisition process and denied any exit. “The ongoing discussions will in no way affect our service delivery and the day-to-day operations of Telkom Kenya”, read the statement.

According to France Telecom Chief Executive Stephane Richard, the company has extensive plans for the East African region.

“France Telecom will certainly be led to invest heavily across the continent. Within this strategy, Kenya will play a pivotal role in the development of the group’s presence in East Africa”, he commented.

The French operator said it is fully satisfied with its work in Kenya, since taking majority ownership of Telkom Kenya in December 2007.

France Telecom Group last year reported over 50 million customers across 18 countries in Africa and the Middle East.