AccessKenya dumps homes for corporate segment

AccessKenya has dropped the home Internet market to focus more on corporates in a change of strategy following its acquisition by Dimension Data early last year.

The firm said it was now focusing on the corporate and the small and medium enterprises market, which are considered more lucrative, and in which Dimension Data has carved its niche.
Deputy Chief Executive Kris Senanu told the Nation in an interview that the business had decided to quit the residential homes market since it is crowded by other providers such as mobile phone firms.

“Prior to the takeover, we started in 2012 our retail approach with the access at home product. We have now totally cut this market. Our focus now starts at the SME level to corporate,” said Mr Senanu.

He said the entry of Dimension Data had given the firm access to advanced technology and cheaper financing, enabling it to build and roll out large scale ICT products for the enterprise market.

CAPITAL EXPENDITURE

Mr Senanu said the firm’s capital expenditure has more than doubled over the past three years to about Sh600 million.

“In the next financial year, we expect this figure to go past the one billion mark as we roll out terrestrial fibre and build up the Ugandan market in which we started operations last year,” said Mr Senanu.

AccessKenya was fully acquired by Dimension Data in a deal concluded in January last year, which saw Kenyan shareholders earn Sh3 billion. Owners were paid Sh14 per share of the tech firm.

The company consequently delisted from the Nairobi Securities Exchange. Mr Senanu said it would, however, continue serving already existing retail customers.

The company is now targeting counties in its expansion strategy as it seeks to take advantage of the devolution process in Kenya.

“We see a lot of opportunities as the counties build connectivity within their jurisdictions as well as interconnecting them and linking their systems with the national government,” he said.