The Kenyan Government last week confirmed that a section of Telkom Kenya employees will be retrenched when the parastatal is privatised. Those targeted are all the non-core and semi-skilled employees.

Transport and Communication Minister John Michuki told Parliament that in order for the company to be competitive in terms of quality, price and range of services in the soon to be liberalised market, it would have to off-load these staff.

On the other hand, Telkom will create new employment opportunities for engineers, technicians, marketing executives and information technology experts to give the company a competitive edge in the market, he said. Michuki, at the same time, said Telkom’s exclusivity period as the sole provider of fixed telephone services in the country would expire on June 30.

One for the impending retrenchment was that the Government wanted to stem losses made by various parastatals such as Telkom and Kenya Railways Corporation, among others. He said the Government had been carrying an unnecessary debt of Sh3 billion every year arising from these losses.

East African Standard