New entrant on Kenya’s fibre cable market

The latest entrant on the Kenyan cable market, Honest Kenya, offers copper and fibre optic cables at 20% less than the average market prices, a move that might instill a price war in the market.

“Compared to the region, the Kenyan market is huge, especially with the rapid adoption of telecommunications, including the shift to e-governance”, said George Kirangu, chief executive of Honest Kenya, quoted by Business Daily.

The company said it would be offering the international brand of Excel copper and fibre optic cables at lower prices, for connecting buildings and business equipment, however it also aims to capitalize on fibre last mile connections, linking homes or offices directly to fibre optic cable networks.

Kenya is one of the many African countries where multinationals have entered the cable arena by partnering with local distributors.

Launched in 2005, Kenya’s largest cable company, East African Cables, signed a deal with French distributor Nexans to provide cables in the African country.

New entrant Honest Kenya is betting on the Excel brand, manufactured by UK-based Mayflex, but said competition proved fierce in the market

“Clients in the telecom sector usually ask contractors to use specific cable brands that have been around for years. Our challenge is market acceptance and we are going to create consumer awareness that the Excel brand is as good as any in the market”, concluded Kirangu, expecting to register cable sales in the next 3-6 months.

However, the increasing interest in mobile technologies like Wi-Fi and WiMax in emerging markets such as Africa, compared to fixed-line telecommunication solutions, is expected to hinder the demand for cables, especially in areas where mobility might be a better option.