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Telkom Kenya Denies Facing Cash Crisis
Published on:
Telkom Kenya has denied recent media reports that it is facing a liquidity crisis, but has admitted that references to a Sh10 billion (US$120 million) bailout refer to a financial plan that is currently being looked at by the company board.
"I wish to assure all our stakeholders including our employees, suppliers, distributors, trade unions and other strategic partners that Telkom Kenya is a stable company that is here for the long haul and we will do everything possible to avert any risks to the business now or in the future," chairman Eddy Njoroge told Capital FM.
The company expects to approve a new business plan that will take it through to 2016, and then it will be in a clearer position to see how much additional funding it will require. The company does not expect to return to profit until at least 2016.
Telkom Kenya's CEO did confirm that the firm currently owes Sh42 billion to its shareholders, and a further Sh2 billion to two banks.
The company is currently 51% owned by France Telecom with the remainder held by the Kenyan government.
On the web: Capital FM
Tags: [telkom kenya] [Kenya]
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