Vodafone Uganda placed under administration

The High Court (civil division) has appointed lawyer Donald Nyakairu as interim administrator of Afrimax, the 4g LTE communications partner of Vodafone Uganda.

According to a notice in the newspapers, effective February 15, Nyakairu will play this role for the next three months.

Nyakairu is a senior partner in law firm ENSafrica, a leading Pan African law firm.

The above development essentially means that in the coming months, the troubled internet, voice and data company shall have to turn in its books to the lawyers for scrutiny.

Being placed under administration is when the directors of an insolvent company appoint an external administrator to investigate whether winding up the corporation can be prevented or delayed and to make recommendations to the directors and their creditors as to whether the company should enter into a deed of company.

Since mid last year, Vodafone Uganda has gone through a rough business patch which has led to the closure of some of its stores and a fall in revenue.

The company has also retrenched some staff.

Vodafone, a British firm, entered the local market in 2014. It partnered with Afrimax a 4G LTE telecommunications operator in sub-Saharan Africa.

Under the partner Market agreement in Uganda, the two companies were expected to offer customers voice and data products and services using the ‘Vodafone Uganda’ brand.