TROUBLED KENYA TELKOM SUBSIDIARY ON THE VERGE OF BANKRUPTCY

Mergers, Acquisitions and Financial Results

Gilgil Telecommunication Industries (GTI) will soon collapse unless the Government acts quickly to solve its financial woes.A subsidiary of Telkom Kenya, the firm is indebted to the tune of Sh200 million and it is appealing to the Government to put in new funding to rescue it.This was the gloomy picture the managers painted to Information and Communication minister Mutahi Kagwe when toured the firm last week.

General manager Albert Onyango pointed out that unless the Government intervenes the firm would be forced to shut at least some of its production lines. He added that the company, which has 335 staff, urgently required some Sh6 million to upgrade some of the lines.

The woes of this subsidiary also reflect the wider financial troubles of its parent company. The company needs to make 12,000 staff redundant but the Government has failed to make a decision on this issue and has yet to announce where the financing for the redundancy package will come from.

The Nation