Mobile telecommunications dealer, Mobicom, which has been the largest dealer for Telkom Kenya has reportedly fired more than 800 employees in what was attributed to a drop in the business which was linked to the merge of Telkom Kenya and Airtel Kenya.
In a memo, the firm said that the ongoing negotiations with Telkom-Airtel have not been concluded favorably and, therefore, pits the company in a bad state.
“Regrettably, the negotiations with Telkom-Airtel have not been concluded favorably to date and business of the company has not improved as anticipated,” the notice stated.
“We, therefore, regret to inform you that the company is not able to sustain you in employment and the company has decided to terminate your services with effect from 31st August,” the firm was quoted by the Star.
Additional reports indicate that only two-thirds of the firm’s dealership across the country are operational.
The Mobicom, which had been the biggest dealer for Safaricom, switched to work with Telkom in 2010.
Mobicom chairman Paul Wanderi Ndung’u said that the decision to jump ship was inspired by the desire to find growth opportunity.
“The decision is informed by research showing that we stand a better chance to grow in Telkom Kenya than in Safaricom. Telkom has more products in its stable than any other operator. It has landline services, mobile networks among others,” he told Business Daily.
While decrying the mass firing, former employee Joseph Kigotho told the Star that the firm’s employees have gone without pay for the last two months signaling financial woes at the firm.
The deal with Airtel is expected to be closed by the end of 2019, the combined entity will have a 34 percent control of the market against Safaricom which has a larger market share 64.2%.
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