The European Investment Bank (EIB) has offered a loan of €35-million (approximately US$40 million) to Telkom Kenya, the East African country’s third biggest operator.
The company’s objective is to use the loan to extend its mobile and data services and predict an increase in market share.
However, the operator has not disclosed exact details as to how it aspires to achieve the objectives using the loan or relevant timeframes and/or contractors. According to the loan consensus, the operator will boost its 3G and 4G coverage and invest in its Fibre-to-the-Building (FTTB) network.
The CEO of Telkom, Mugo Kibati declared, “The strategic support from the EIB will give impetus to Telkom’s data network expansion, that has seen Telkom consistently enhance indoor coverage, expand our 4G network, optimise our 3G network, thereby boosting our capacity to handle mobile data traffic, in response to growing customer demand.”
On the other hand, the Vice President of the EIB Ambroise Fayolle commented, “This loan will also benefit its fixed broadband network; a service which is widely seen as a basic need for businesses to be competitive in a global market. Our backing will help to provide potentially millions of people with access to data networks, which nowadays is a basic condition for doing business in a connected world.”