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In a not-so surprising move, Kenya Power said it now has its eyes set on a new venture —the provision of high speed internet services.
Business Insider Africa understands that this is part of the public utility company’s drive to further diversify its business model and generate more revenue in the process. This is not an entirely new venture for Kenya Power, by the way. Prior to this time, the company has been leasing fibre-optic cables attached to its power poles.
READ: Kenya’s state-owned power company is probing workers for fraud and everyone is anxious
But Kenya Power is now hoping to become a full-time internet service provider (ISP). In the coming weeks, it will unveil a package that will enable its corporate clients to buy electricity and high speed internet as a bundle.
“We will provide our corporate sector customers with a bundled service of electricity and internet. Kenya Power will leverage on our vast network to tap into the market…we will offer the corporates the option of using our internet for their primary use or redundancy… Looking at the business landscape, the opportunities are immense and available for everyone,” the company said in a statement to Business Daily.
Kenya Power’s entrance into the Kenyan ISP market is definitely expected to intensify the competition already witnessed in the space. However, it remains to be seen whether the company can be able to compete with some of the leading competitors such as Safaricom, Wananchi, etc.
READ: Furious Kenyans blast Kenya Power after grid failures plunged the East African country into darkness
Data seen by Business Insider Africa show that Safaricom currently dominates the space with its 37% market share, followed by Wananchi which controls a market share of 29.2%. Others are: Jamii with 18.9% market share, Poa Internet with 9.1% and Liquid which controls only 2% of the market share.
To create a soft-landing for itself, Kenya Power said it would start by offering very affordable packages. Besides that, the fact that the company is already known by Kenyans is expected to also play to its advantage.
READ: One of Nigeria’s biggest and oldest construction companies is diversifying into cashew processing; here’s how that is going
Do note that diversification is a viable corporate strategy and many companies usually adopt it. According to Management Study Guide, companies pursue diversification efforts when they are trying to expand and generate more revenue. And this can simply be achieved through the launch of new products in the markets where they already operate.
Just last month, Business Insider reported about the decision by one of Nigeria’s oldest and biggest construction companies to diversify into cashew nuts processing.
READ: Another blackout looms in Kenya as Kenya Power workers threaten strike
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