Foreign firm acquires local Internet service outfit

A California-based firm Tech Holdings has acquired Poa Internet, a local low-cost internet service provider that targets individuals and small businesses in low-income and rural communities in East Africa.

The acquisition of Kenya’s community internet service provider, was ratified last week by Competition Authority of Kenya which through a gazette notice said the buyout does not pose threat to the market.

“In exercise of the powers conferred by section 42 (1) of the Competition Act, 2010, the Competition Authority of Kenya excludes the proposed acquisition of indirect control in Poa Internet Kenya Limited by Tech Holdco 1 from the provisions of Part IV of the Act,” the Competition Authority said in the Kenya Gazette.

Lower middle class

Poa Internet made revenues of over Sh500 million in the year 2020, working with lower middle class communities in Nairobi. 

The Internet market in Kenya remains big especially among the low income earners who have been left out by big telcos who target the middle class.

Internet’s bottom of the pyramid is largely untouched and seems to be attracting capital from abroad.

Working with local people from the communities where it operates, Poa facilitates home broadband and a network of Wi-Fi hotspots.

Available data shows they are operating in approximately 40 communities in and around Nairobi.

Tech Holding describes itself as a full-service consulting firm that was founded on the premise of delivering predictable outcomes for clients.

Small businesses

Poa was founded in 2015 by CEO Andy Halsall to provide low- cost internet to individuals and small businesses in low-income neighborhoods in East Africa. 

It claims to offer customers access to affordable and reliable data that is 40 per cent cheaper than network operators, free content and free online services and tools

The last mile internet delivery market is still a huge market in Kenya due to the high cost of laying broadband infrastructure.