Technology

Senior managers quit as expats take over at KDN

kdn

KDN workers lay fibre optic cables. Expats have been hired to grow firm. File

Six senior managers at telecommunications company Kenya Data Network (KDN) have resigned over the past 12 months following a move by new South African owners to bring in expatriates to run the firm.

Chief executive officer of KDN, Rikus Matthyser, said the company’s new owners, South African technology firm Altech, employed a number of expatriates to “mentor” the local managers for a period of between nine months and two years which triggered a wave of resignations by the senior managers.

“To drive the company to the next level we wanted people with 25 years experience, which none of the senior level managers had,” said Mr Matthyser. “To bridge this gap we brought in expatriates to mentor them, but instead of seizing the opportunity I am surprised that they have decided to resign,” he said. Some of the managers who talked to the Business Daily, however said they resigned after realising that their responsibilities had been taken over by the expatriates.

No communication

They claimed that no formal communication was made in regard to how the expatriates were going to mentor them or how long the exercise was going to last, while they were supposed to report to the expatriates.

Elizabeth Moki- Ombisi, the chief commercial officer and Vincent Wang’ombe, the chief marketing officer, are both serving resignation notices being the latest senior managers expected to exit the firm.

Mr Wang’ombe’s position will be taken over by Atul Charturvedi from India, a former CEO of Essar Telecom Kenya who quit the company in March. Ms Ombisi has been replaced by Raju Jandu from South Africa. Others managers who have left KDN recently include Rose Osiemo, the head of legal affairs whose position is still vacant, Edward Kinyanjui, former chief finance officer whose office was taken over by Roger Waren from South Africa, and former chief technical officer Bhavesh Mistry, who was replaced by Bob Laftie also from South Africa.

The resignations leave only two locals in senior management positions at the moment; Beatrice Waweru, the human resources officer and Faith Njue, the head of projects.

Former CEO

The former CEO Kai Wulff, who has been heading the newly formed Altech Stream East Africa division, is said to be on his way out after expiry of his contract next month.

KDN’s new ownership has been driving a shift of the company’s business structure from focusing on the retail market to concentrate on corporate contracts, which is said to have rendered some of the managers redundant. A decision by the new owners to scrap an employee share option plan where workers were to own 0.5 per cent of the company also caused discontent.

Mr Matthyers, however, said the scheme was being re-worked to include all permanent staff.  KDN announced a pre-tax loss of close to Sh170 million for the year ended February 2011 following a profit of Sh700 million the previous year.

“We have grown this firm and never made any loss, now we are being told that we don’t have experience to grow it to the next level, but look what has happened, for the first time we have posted a loss,” said a former senior manager who talked to the Business Daily and who sought anonymity as he is yet to clear with the firm. There has been stiff competition within the telecoms and data broadband sectors,  triggered by the introduction of cheaper, large-capacity international submarine cable connectivity.

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