The Kenya Power and Lightning company (KPLC) is seeking to rival top internet service providers in Kenya after it announced that its home internet will be ready by next year. According to data from the Communications authority, Safaricom controls the market share of internet provision in Kenya at 37% followed by the Wananchi Group at 29%.
Kenya power is seek to leverage its nationwide network of fibre cables to offer reliable internet services to Kenyans. This move comes at a time when most companies are seeking to diversify the revenue generating projects.
In a statement released to the press Kenya Power acting Managing Director Geoffrey Muli. The Utility company will be launching its internet provision services by the end of the current financial year. The entry of the utility company in the internet business will most likely trigger a price war as the company has a more developed network than its competitors.
According to public documents, KPLC signed a 20 year lease with Safaricom for the use of a pair of fibre cables. The lighting monopoly also signed 5 year leases with Wananchi Group and Jamii telecommunications. The lease are worth in excess of over 800 million Kenya shillings.
KPLC financial position has been improving greatly after a recent shake up in the company. However, it is expected to take a hit after the government approved a 15% tariff cut to help bring down the price of electricity.
Kenya has been losing major manufactures mainly due to the price of electricity. Electricity is a very integral component in manufacturing and processing as it helps run the machinery. The country is banking on a simple business model sell more cheaply and make profits.
The entry of Kenya Power into the internet business will a major game changer for the country. Under such competition the country may even achieve over 80% of internet coverage.