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Was Michael Joseph Getting too Comfortable at Safaricom, Again?



For close to five months, the new Safaricom CEO, Peter Ndegwa, will not take up his role, which has been highly publicized.

Ndegwa who
has a highly successful career is taking the mantle from the late Bob Collymore,
albeit indirectly, since Michael Joseph is in the acting role since July 1.

The new appointee has to wait until April 1, 2020 to formally take up the role which has been keenly watched by Kenyans. Sources say he will, in the meantime, be serving notice at Diageo, his current employer.

A House at War with Itself

For the telco
giant that was started in an apartment at Norfolk towers in the year 2000, it
now seems like Safaricom is a house at war with itself.

Less than 24 hours after unveiling their new strategy, it seems like the happenings behind closed doors could be further from being simple, transparent or honest.

It smells like some sort of low-profile boardroom coup on the status quo.

In a pointer that Joseph was in it for the long-haul, the company press kit referred to him not as the ‘acting’ CEO but just as the CEO.

Further, it seems like Joseph was getting too comfortable with the company, promising that Kenyans could ‘talk to him’ by dialling a certain number.

However, the
call was an audio recording unlike what would have been the expected response
of one-on-one calls with Joseph.

Joseph thanks
Safaricom customers in the audio for
being their customer and for continued support.

For someone holding the CEO position temporarily, this audio recording could point to Joseph not being ready to leave the position just yet. He sounded like the champion of the new Safaricom strategy.

With the announcement of the new CEO coming so soon after promising to talk to their Safaricom customers, this may have come as a surprise to the man who wonders if he could do the same things he did at the telco to the struggling national carrier, Kenya Airways.

Questions abound as to why the new CEO was not unveiled while launching the new strategy. Why was Joseph being referred to as the CEO very well knowing that his replacement was ready.

And as if
pulling the carpet from under Joseph’s feet, why was Ndegwa’s appointment announced
out of synchrony with the new strategy?

Seemingly, the
government has finally had its way by having a Kenyan at the helm of the country’s
most enviable company.

Whichever way
we look at these scenarios, one holds that for Vodafone, the centre could no
longer hold.

An even bigger
question is whether a Kenyan can be trusted to propel Safaricom into greater success
than have the two Vodafone boys.

Kenyans who Have Steered Companies to Greatness

For the longest time, the Kenya Wildlife Service (KWS) struggled with loss-making until Julius Kipng’etich was appointed its director. Interestingly, he and Ndegwa are Starehe Boys Centre alumni.

Kipng’etich took
over KWS in 2005 when it almost a billion shillings in the red.

From a Ksh800
million graft-ridden entity to a Sh4.6 billion corporation, the technocrat left
the entity just six years later with a complete devolved management and a
strategic plan.

Leakey was indicted by a 1994 Auditor General’s Report where he was accused of
running the organisation as his personal business.

successor, Evans Mukolwe, was no better and he was suspended for flagrant abuse
of privilege.

Another success
story is that of Martin Luke Oduor-Otieno who led Kenya’s
biggest bank by assets KCB
into the safe zone after years of poor

was among those appointed by former President Daniel Moi in 1999 to help turn
the economy around.

Despite his
retirement, Oduor-Otieno remains one of the most sought after executives to
help companies grow their brands. He is earning tens
of millions per year for just sitting on boards

Kiboro is another Kenyan who shows that Kenyans have what it takes to excel in senior
corporate positions.

The 75
year-0ld Kiboro has been the Group CEO of the Nation Media Group and he also chairs
other companies in Kenya.

With these
successful cases, ndegwa has his assignment ready and it is up to him to prove
that indeed he can do it locally as he has on the international stage.

Government, Vodafone Rivalry

For a company
like Safaricom, letting go of control is a difficult thing to do. For shareholders
like Vodafone, it has been a grip of steel on Safaricom to ensure their
interests are not disadvantaged.

control was seen with Joseph’s re-appointment while the Kenya government was
seemingly lobbying to have a Kenyan replace Collymore.

Evidently, Vodafone
was for the status quo at Safaricom not ready to relinquish the position despite
having been at the helm for 19 years.

The boardroom
intrigues started way before Collymore’s reign at the telco came to an end. At
the end of his tenure, Collymore’s term was extended by a year as a ‘suitable’
replacement was sought.

In mid-July
this year, the government expressed interest in the position being filled by a
Kenyan just weeks after Collymore died.

Later that
month, ICT CS Joe Mucheru said that even though the government is a major
shareholder with 35% stake in the leading mobile services operator, it could not
dictate appointments.

Mucheru said
that the Safaricom board was tasked with that responsibility.

With the retreat
from influencing the next Safaricom CEO choice, the focus was now shifted to
the board. The
men and women who would pick Collymore’s successor had their job cut out
Or was it so?

Joseph who is
Vodafone’s advisor doubles up as a Safaricom board member and the quick turn of
events could be bringing to light what could have transpired in choosing a
substantive CEO for Safaricom.

A History of Failures, Disappointments

With Ndegwa’s chequered
, Kenyans are watching hoping that he will not go the way of the
infamous brilliant minds that ran down Kenyan companies.

It is
understandable that Kenyans are apathetic towards a Kenyan leading such a
company due to what they have witnessed.

have abused the country’s economy for decades under the watchful eyes of their
political godfathers in Kenya’s successive governments.

Among the
casualties of the thieves include Mumias Sugar whose success story in Africa resonated
since 1976 under the management of Booker Tate.

Mills, Uchumi Supermarket and other companies have collapsed due to poor management
and theft.

And it seems
that the Uhuru Kenyatta government has gone far beyond what Kenyans have been

With bated breath, Kenyans will have to wait to see how far Safaricom will if go starting with its third decade with a Kenyan at the helm.

Read>> American Companies Opening in Kenya Renew Hope for Economy

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