Kenya’s Orange says to invest $99 million
Orange Kenya plans to spend 8 billion shillings ($99 million) this year to develop its network, the company’s deputy chief executive said on Friday. Orange, formerly state-owned Telkom Kenya, operates the sole fixed telephone network in the country. It also runs a mobile service and offers broadband to customers.
France Telecom invested close to 10 billion shillings in infrastructure developments on the network in 2008, after taking over the company from the government. “We anticipate that in 2009 we will make a further investment in this line to the tune of approximately 8 billion shillings,” Peter Reinartz told Reuters.
The funds will be used in a range of investments, including optimisation of its CDMA and GSM networks and broadband. “We are investing in rebuilding our fixed network infrastructure countrywide, which was heavily plagued by vandalism,” he said. Reinartz said the firm would borrow the money but declined to elaborate.
Kenya’s top mobile operator Safaricom, said on Friday it was planning to borrow up to 12 billion shillings to fund expansion.