Safaricom’s growth in the fixed internet provision sector has eaten into the market dominated by rival Zuku, a report by the Communications Authority of Kenya has revealed.
According to the quarterly report, Zuku; which is owned by Wananchi Group Kenya has recorded a four per cent decrease in its total market share. The firm’s stakes dropped from 34.4 per cent in March to 30.4 per cent in June even though it still carries the largest number of fixed internet users in the country which currently stands at 112,115.
The report further alludes that Safaricom’s market share has grown from 19.4 per cent in the last quarter to 21.2 percent as of June 2018. The 1.8 per cent increase in market share is attributed to the firm acquiring approximately 14,537 new fixed internet users during the quarter under review.
The acquisition of new customers has enabled the mobile service provider to have a total of 78,104 users in the market.
The third highest performer in the market, according to the report, is Mawingu Networks Limited which controls 21.1 per cent of the market share with 77,722 active subscriptions under its name. Jamii Telkom rounds off the top four with 43,529 subscriptions which is equivalent to 11.8 per cent of the market share.
Zuku according to Bloomberg, has contracted US sales consultant Lazard Limited to work on a potential sale plan as top investors with combined shareholding of 85 per cent look to exit the firm currently embroiled in a tax battle with the Kenya Revenue Authority (KRA).
According to reports, the three main investors of Wananchi Group Kenya; Liberty Global, Altice Europe NV and London-based Helios Investment Partners, are keen to sell their stakes in the Kenyan company valued at Ksh50 billion ($500 million) including debts.