Access Kenya: Who Are These Guys?
I’m intrigued by this publicly listed company mainly because of it’s owners/founders. I read somewhere that the Somen’s are Israeli Jews and their father immigrated to Kenya in the 1960′s or 1970′s (he apparently owns the Fairview Hotel). Anyway, his sons are now running this company called (Access Kenya).
I looked at their website and it basically says that they are an internet service provider and they started the company in 1995 (they were way ahead of their time in that respect. At least in Kenya). They also appear to have an interesting board of directors (Eddy Njoroge the MD of Kengen sits on their board. That must be a good political connection to have).
So, how did these guys do it? Since there is no fiber optic cable in Kenya, what is it they are using to provide internet services to their clients? Satellite? I mean, how much does it cost to set up an ISP company in Kenya when you don’t have fiber optic cable lines?
Is Kencall one of it’s clients? since Kencall needs internet services and the founder has been complaining about the high cost of bandwith in Kenya, who is Kencall’s ISP provider?
Basically, what I’m trying to accomplish with this post is to get as much information out there on Kenya’s IT sector in light of this fiber optic cable that is supposed to be coming in one year. Are companies like Access Kenya going to face stiffer competition when that cable comes? or will they use their political connections to try and block out the competition? (like the brokers on the NSE).
So, if anyone has more knowledge about this industry, please feel free to share it with us or if you don’t, just provide some of your idea’s on what you think will happen or where you think the IT sector is headed.
are you kidding me, KE? There are fifty million ISPs in Kenya, and the competition is stiff as hell…….to go down memory lane, all ISPs in Kenya that started in the 90s and early 00s used satellite and all had to go through the then Telekom controlled Jambonet. That was before the new regime and of course the telecoms sector has been liberalized a thousand fold including the Jambonet monopoly.
Anyway, there are fifty million ISPs in Kenya and those that survive post fiber optic will not be those based on political connections but rather based on breadth of service, very deep financial pockets and diversified service/product range. Access Kenya is a perfect example, the Somens saw the writing on the wall when Telecoms SA bought out Africa Online and Wananchi Online was transformed to Wananchi Telecom with a $100 million infusion of private equity capital……..they needed to expand their war chest quickly to get the capital to make the infrastructure and development investments they need to stay competitive especially at a time in Kenya now that standalone ISPs are extinct.
Hence why they did the successful IPO……and I wager the landscape will get even more cutthroat now that Telecoms firms offer increasingly more sophisticated ISP services, remember you have Safaricom, France Telecom, Celtel, Wananchi, Africa Online, Flashcom, Popote, Access Kenya etc, etc all offering sophisticated voice and data services…..and the list is growing by the day.
AK have just bought 10% of TEAMS i.e. still head of the game.
KE,
Kencall are still relying on satellite for their services, remember, the fiber optic cable hasn’t reached mombasa yet.
Yes, the Kencall CEO complains of the high costs of doing business, but I know for sure that the established call centers have been given significant subsidies by the world bank to continue with business while they wait for the fiber to hit off.
As a matter of fact, World Bank has been subsidizing kencall for a while because without them, the business would not make sense (finanacially)
As for the Somen’s, I didn’t know they were israeli jews, I assumed they were brits who’d remained from colonial days.
I’m not sure if fairview is owned by the somen’s( I don’t think so ), I know it’s owned by a jewish guy who’s been in kenya for ages too. He also opened a boutique business hotel in upperhill last year with very affordable rates for the business traveller.
It seems Jewish people prosper everywhere they go..
SIJUI,
Good info there…
These guys were at the right place and at the right time.And being Jewish,they know how to make successful businesses especially in hostile enviroments.Look at all the rich men in europe especiaaly russia are all Jewish.
Their grandfather ,Israel Somen was the mayor of Nairobi in the 60s.Other famous kenyan Jews are the Block family.Majority come from nakuru,eldama ravine and eldoret and mainly involved in farming.and arrived in Kenya in 1904,and prefer to be kenyan citizens
Its interesting that the lowest common denominator for every story on this blog is racial profiling.
mhindi mungiki:
I prefer to use the term “cultural curiosity”.
Aren’t you the same person who accused the kenyan government of practicing institutionalized racism against Indians? Me thinks you are overly sensitive about the issue of race and ethnicity (similar maybe to a kenyanized version of Al Sharpton).
Actually, i was expecting a searing, thought provoking, sweeping treatise from you based on jonathan somen’s accent….
KE, you do have a problem. Please take a step back and think about it. I mean we are both anti-ODM but your kind of thinking is really extremely difficult to sympathise with. Whether it is the Kalenjin, Luo, Asians, the Gikuyu, Jews, Europeans etc you employ the very basest notions to advance the most common reprehensible crap. Good riddance.
Wahindi Mungiki:
I like your sarcastic humor. You can be funny, but I still maintain that you get too emotional about these “cultural” discussions (and I don’t think your emotional trigger began when you started reading this blog). It began in Kenya and it began with your perceptions of how the African led government treated your people. Don’t blame me for that, but of course, we can still have this discussion because I find it interesting.
Can we get back to discussion access kenya on this thread? thanks
WAHINDI MUNGIKI Is an emotional person.
There’s nothing wrong with speaking about people’s racial culture and how that brings success or limits their success.
mzeiya:
You said “people’s racial culture and how that brings success or limits their success.”
Then we africans have a mega-problem when you consider there are very few ‘success’ stories in Africa esp Sub-Saharan Africa. We may have a Dangote or Ramaphosa (though there have been allegations about their ‘closeness’ with the former or current regimes).
The “Jews” boast very impressive ceredentials in creating wealth e.g. Sheldon Adelson. Americans like Bill Gates, Waltons & Warren Buffet who can claim ‘clean’ wealth. Indians like Ambani brothers & Lakshmi Mittal are bona-fide billionaires. The Chinese billionaires are increasing rapidly.
Even a 3rd world country like India is growing at 8% and has seen MASSIVE strides in the ICT sector (which is what Access Kenya is in). India for all its flaws has become a global icon for ICT.
Of course, Africa is dirt-poor (economically not ‘natural resources’) unlike Singapore. So where will we end up at this rate?
KE:
No emotions here. “My people” ? you mean Kenyans ? then I agree, we have all been shabbily treated by successive governments.
Mzeiya:
“people’s racial culture and how that brings success or limits their success.” — I sure hope you are kidding… aren’t you?
WAHINDI MUNGIKI,
i’M NOT KIDDING. I am yet to see any “poor” indians in kenya, seriuosly, never seen none. Is it a coincidence that indians are not poor in kenya, yet while in their home country, a good number of the masses are dirt poor, not just poor?
Are the indians in kenya any more intelligent or any more special than their bredren in india ?
I doubt it. Fact is Indians in kenya have a good support system, they help, support and bail each other out in huge ways. At times, a black kenyan would befriend them or would be a loyal employee and thus he too would benefit.But this is indeed rare.case in point Tuskys…
The fact that they’re indians in kenya HELPS them, does not hurt them economically. So yes, indeed race does play a part in advancing or limiting one’s economic success. Now, I know that’s not the “color is blind-let’s all get along kumbaya..” you wnat to hear , but it’s the truth, and honestly, I can’t be mad at anyone for that. I’m just merely recognizing it as a factor.
COLD TUSKER :
It seems you have a good understanding of singapore and have always looked up to their leader as role model for african countries. I understand this guy has been there for long (since indepence ?)
Assuming kenyatta was still head of kenya, do u think we’d be similar to singapore, or worse off than we are today ?
Also, I’m not really sure I’d classify India as “3rd World Country”..Coz then, where would that place kenya ? 4th world. India’s economy will overtake britain in 10 years, so I hardly would view such a country with such potential as third world. check it out:http://news.bbc.co.uk/2/hi/south_asia/6294409.stm
Kencall’s ISP – they got 2 for back up purposes given the nature of clients they deal with they dont take in bullshit ati telling them you experiencing a down time besides that’s money running. So they got KDN and Tahide ( not so sure bout the spelling) so when one is down they switch.
To MZEIYA
I have news for you.
India is a third wolrd country.
just because india has a trillion dollar economy doesn’t make it a middle income country or first wolrd country for that matter.
i f you have a billion people each making 1000 dollars a year then you have a trillion dollar economy but they are still living in poverty.
Last time i checked a middle income country has a gdp per capita of around 12000 US dollars per year.
so countries like Botswana, Barbados, Trinidad and most othe countries in the Carrebean would be considered Middle income
while India with a gdp per capita of around 3000 dollars per year is considered third wolrd.
Wealthy countries have gdp per capita starting in the 25000 dollars per year.
South korea. Singapore with the USA at around 40000 dollars per year.