In this digital TV generation, one of the best providers you cant fail to mention is Zuku TV. It recently expanded its offerings to include FTTH and a quick survey can’t fail to identify the Zuku fiber rates as some of the best on the market even with their limited reach. But then, all this could be history as the company has a couple of alarming issues in Kenya as we are yet to see.
Wananchi Group, the holding company of this the PayTV player cum Internet provider firm Zuku has long trailed troubles in the Kenyan market deriving from unsettled battles with the Kenyan Revenue Authority and declining marketshare to rivals like Safaricom. The latest one is an exit by majority share holders that include Helios Partners, Liberty Global and Altice Europe NB according to Bloomberg.
Their combined sharing holding is a staggering 85% and the trio have contracted a US based sales firm called Lazard Limited to work on a potential sale plan amid the looming troubles. Their exit and how this will impact its wider operations operations that extend beyond Kenya to Uganda, Tanzania and Malawi is now put to test.
Zuku’s troubles with Kenyan Authorities
According to the same reports, the three investors Liberty Global, Altice Europe NV and London-based Helios Investment Partners are keen to sell their stakes in the Kenyan company valued at $500 million. The three firms contributed close to $130 million as funds needed by Wananchi group in 2014, with Helios Investment Partners pumping in $40 million amid an ongoing tax battle between the firm and the Kenyan taxman.
Also, Zuku’s Co-Owner Richard Bell is being investigated by Kenyan Authorities for alleged Tax fraud amounting to 3.4 Trillion KE, over his appointment as a tax representative for his offshore companies based in Mauritius. This according to the Star.
What does all this mean for Zuku Operations in Uganda?
Potentially Zuku might find new investors willing to buy in and then disposed off. Whether it will continue operating in Uganda or carry the Zuku branding remains to be seen.
In Uganda, it operates a DTH satelite TV and a Fiber-To-The-Home service. The latter has been on a slow rollout and is limited to Areas of Naguru, Bukoto and Ntinda. The above troubles could at least offer us some insight as to why Zuku hasn’t spread its wings beyond the aforementioned areas.
It should also be noted that most of the Zuku’s administrative and customer support infrastructure is based in Kenya and any potential sale could outright affect its operations here.
