AGM okeys Kenya Power’s new high speed Internet unit

Kenya Power is set to start connecting Internet users to its fibre optic network in a move that could shake a market that is dominated by three telecommunication companies.

This new venture will be carried out by Kenya Power International Limited, a new subsidiary established to handle the firm’s telecommunications business including its fibre optic footprint.

Kenya Power’s entry into the domestic Internet market will see it increase competition in the segment, which is dominated by Jamii Telecoms, Wananchi and Safaricom.

“The new outfit will be responsible for development of fibre-to-the-home which is a major business direction,” said Kenya Power managing director Ben Chumo yesterday during the company’s annual general meeting.

“We already have the necessary infrastructure and therefore giving this extra service to our customers will not require any major investment. We shall not put our lines underground where it is unsafe but along our power lines.”

Mr Chumo did not offer timelines for the diversification but shareholders approved the creation of the new subsidiary to spearhead the venture.

Kenya Power has since 2010 fixed over 1,800 kilometres of optical fibre along its high-voltage power lines — traversing through 24 of Kenya’s 47 counties — and is seeking to extend this to all regions.

The State-owned utility firm earned Sh259.4 million revenue in the year to June 2015 from leasing out extra capacity on its fibre optic network, income it now intends to grow to Sh1 billion by 2017.

The electricity firm does not use all the capacity.

It leases out the extra bandwidth to customers including Safaricom, Liquid Telecom, Jamii Telecommunications, Wananchi Group and Airtel.

Some of these customers are now set to morph into competitors if Kenya Power actualises its diversification plan.

Safaricom has currently connected 6,047 homes to its underground fibre network and says that it is on track to close the year with 2,000 more customers. Jamii Telecom’s Jamii Faiba dominates this Internet-at-home market segment with 7,486 customers connected to its fibre infrastructure of more 4,000 kilometres across the country.

Telkom Kenya has 4,500km of fibre optic network spread across the country while that of Access Kenya stands at 350 kilometres.

Mr Chumo added that Kenya Power International Limited, the new subsidiary, will also begin recruiting directors and new lecturers for the revamped training centre, which they intend to turn into a fully-fledged university.