In Africa in general, demand for broadband connectivity is growing thanks to a certain number of factors. The growth is attracting new investors, even those in the energy sector.
Public company Kenya Power announced, Wednesday (July 6), it would launch fixed internet services in the country by June 2023. According to the utility company, the move will help diversify revenue streams and address the challenges currently faced by its electricity division.
To offer the proposed services, Kenya Power plans to leverage its extensive network of more than 7,000 kilometers of fiber optic cable connected to its power transmission lines. The company will provide dark fiber services to Internet service providers (ISPs) in Kenya and East Africa. In recent months, the state-owned utility has piloted the provision of fixed Internet to a number of its business customers.
In March, it announced its plan to enter the fixed internet market since electricity tariff cuts would likely affect its revenues. Indeed, two months earlier, the government cut electricity rates by 15 percent to reduce electricity bills for households and businesses. The move is expected to create a Ksh26 billion (US$220 million) revenue shortfall for Kenya Power.
Demand for broadband connectivity has accelerated over the past two years, due to the coronavirus pandemic notably. The growth presents attractive business opportunities for Kenya Power and telecom operators, mainly in the largely untapped fixed internet segment, according to the Communications Authority of Kenya (CA).
Once its fixed Internet services are launched, Kenya Power will have to compete with Safaricom PLC and Wananchi Group, which control 35.8 percent and 28.1 percent of the fixed internet market respectively. Nevertheless, as the owner of the infrastructure used by ISPs, it will surely introduce competitive prices, starting a price war in the market.
Isaac K. Kassouwi
Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...
Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...
Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...
Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...
Ecobank named alongside AfDB, ECOWAS, EBID and BOAD in the April 27, 2026 corridor financing mis...
The institution said the outlook for commodity prices remains subject to significant risks, including a longer-than-expected duration of hostilities in...
Transtu to acquire 48 railcars for metro and TGM lines €160 million EBRD-backed plan supports rail upgrades and expansion Government targets 36...
ArcelorMittal Q1 iron ore output falls 3.2% to 9.7 million tons Liberia operations hit record output amid $1.8 billion expansion Company targets...
Côte d'Ivoire raises gasoline price to 875 CFA francs/liter Kerosene price increased to 745 CFA francs per liter Global oil surge, subsidies and...
UK museum to return 45 Botswana artifacts after 150 years Items collected in 1890s; restitution follows Botswana request Return tied to...
The history of Kerma stretches back several millennia. Located in what is now northern Sudan, the site was inhabited as early as prehistoric times....