The Board of Directors of Telkom Kenya Limited has expressed confidence in the direction the management team is taking and faulted recent media reports that the telecommunication services provider is facing a financial crisis.
Orange Kenya board chair, Eddy Njoroge and the firm’s CEO, Mickael Ghossein, termed the reports as “painting a bad image of the company and causing unnecessary anxiety over its future.”
The firm’s board expressed optimism that the company was right on track due to a robust business strategy that has seen the company provide innovative products and quality services to its customers.
“I must reiterate that as a Board of directors, we are confident in the way the Management team has worked tirelessly to transform the company in the past three years and will continue to extend the Board’s strategic counsel in everything that they set to do,” said Njoroge.
He said the board was currently reviewing a business strategy proposal from the management, a confidential document that could have been leaked to the media, adding that the plan in question was designed to steer the business through to the year 2016.
“Early this year, the management proposed to the Board, a strategic plan running through to 2016, which is still under validation by the board,” he said, further assuring all stakeholders that the company was in a sound state and like any other prospective firm, was futuristic in its growth strategies which required the injection of more funds.
He said that like any other company, Telkom Kenya Limited was in order to seek developmental capital from its shareholders first before considering other options.
On his part, the CEO, Mickael Ghossein, said price wars, which featured prominently last year, have affected the company negatively in addition to escalating fuel prices, FOREX fluctuations and vandalism of company assets, noting that it’s estimated that every year, the firm losses in excess of Kshs 2 billion ($ 24.1 million) to vandals.
“Over the last one year, the business environment in Kenya has been adversely affected by myriad factors including: inflation, FOREX fluctuations, a changing regulatory environment due to price controls and vandalism. These factors, like any other business, impacted negatively on our performance last year,” said Ghossein.