Business Insider Africa understands this is part of the 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. Previously, the company leased fiber optic cables attached to its utility poles.
But Kenya Power now hopes to become a full-time Internet Service Provider (ISP). Over the next few weeks, it will unveil a package that will allow its business customers to purchase electricity and high-speed Internet as a package.
“We will provide our business customers with bundled power and internet service. Kenya Power will leverage our extensive network to tap into the market…we will offer businesses the option to use our internet for their primary use or redundancy…Looking at the business landscape, the opportunities are immense and available for everybody “, the company said in a statement to Business Daily.
Kenya Power’s entry into the Kenyan ISP market is sure to intensify the competition already seen in the space. However, it remains to be seen if the company can be able to compete with some of the major competitors such as Safaricom, Wananchi, etc.
Data viewed by Business Insider Africa shows that Safaricom currently dominates the space with its 37% market share, followed by Wananchi which controls a 29.2% market share. The others are: Jamii with 18.9% market share, Poa Internet with 9.1% and Liquid which controls only 2% market share.
To create a soft landing for itself, Kenya Power said it would start by offering very affordable packages. Moreover, the fact that the company is already known to Kenyans should also play to its advantage.
Note that diversification is a viable business strategy and many businesses typically embrace it. According to the Management Study Guide, companies continue to diversify as they try to grow and generate more revenue. And this can simply be achieved through the launch of new products in the markets where they already operate.
Last month, Business Insider reported the decision of one of Nigeria’s oldest and largest construction companies to branch out into cashew processing.