KDN replaces chief executive after buyout

Liquid Telcom Kenya CEO Shahab Meshki (left) with other officials of the company in Nairobi last month. He said the telco targets 10,000 homes. FILE 

By OKUTTAH MARK

In Summary

• Ben Roberts will take over from CEO Shahab Meshki in an acting capacity as the firm seeks new avenues to turn around its fortunes.
• Mr Roberts was the group director of network strategy at Liquid Telecom and Mr Meshki has been moved to a newly created position of head of customer account and service management.

Kenya Data Network (KDN) has replaced its chief executive, less than a year after a UK firm bought a 80 per cent stake in the company.

Ben Roberts will take over from CEO Shahab Meshki in an acting capacity as the firm seeks new avenues to turn around its fortunes.

Liquid Telecom bought a 60.8 per cent stake from South Africa’s Altech and 19.2 per cent from businessman Naushad Merali in January, in a sale that was driven by a quest for new capital to boost the firm’s operations.

READ: KDN changes to Liquid Telecoms after sale of stake

Mr Roberts was the group director of network strategy at Liquid Telecom and Mr Meshki has been moved to a newly created position of head of customer account and service management.

Mr Meshki is from Germany and moved to KDN from Cisco Kenya Ltd in 2011.

“As Liquid Telecom moves from the initial stage of building networks to the key phase of selling our advanced digital services, it’s a privilege to have such a rich pool of talent within the group that we’re able to recruit senior group positions from,” said Nic Rudnick, CEO of Liquid Telecoms in a statement.

“This move to group level for Shahab comes after he has completed the successful transition of Liquid Telecom’s Kenya operations, formerly KDN into the new brand, Liquid Telecom Kenya (LTK).”

KDN, now Liquid Telecom Kenya, was pushed into losses mainly due to failure to secure big contracts, including a multi-million shilling contract with Safaricom last year, a loss that has seen KDN along with Altech’s West Africa operations hit earnings of the parent company.

KDN’s market share dropped to 21.6 per cent in June from 36.7 per cent in September 2011 based on subscribers, according to data from the Communications Commission of Kenya .

It slipped to second position after being overtaken by Wananchi Telecoms (40 per cent). KDN reported a drop in revenue from Sh3.2 billion to Sh2.1 billion for the six months ended August 2011.