Essar cuts ties with Kenya partner

Mobile operator Essar Telecom Kenya Ltd, operating as yu, has terminated its contract with its sister firm Aegis Services Kenya Ltd, raising tensions for the jobs of more than 70 customer care employees. It comes as price wars in the telecommunications industry in Kenya continue to rattle the sector.

The operator has instead opted for Horizon Contact Centre to handle its call centre services with affected employees being asked to reapply for their positions.

This comes at a time when heightened competition, which has seen mobile tariffs fall to as low as Sh1 per minute, coupled with the enlisting of subscribers with low disposable income has seen the average revenue per user (ARPU) drop to record lows.

Aegis, in its communication to employees, says its contract had been terminated by Essar Telecom and hence has been forced to move out of Kenya.

“The business has been awarded to a new service provider. As a result Aegis has been given notification that they were not the successful service provider,” said a communication to employees.

By Staff