The European Investment Bank (EIB) has confirmed it has received an application for a loan of 4.1 billion shillings (US$40,590,000) from Telkom Kenya.

The telco requires the loan facility to fund several initiatives aimed at improving the quality of its services.

In addition, Telkom Kenya is looking to improve its coverage and expand its mobile product offerings, as well as introduce a mobile financial solution.

Specific details are expected upon approval.

The company believes the financial resource will help it to enhance profitability, but also help it to attack Safaricom's dominance in voice, data and mobile money – which currently controls approximately 70% share of the local telecoms market.

The loan application bolsters Telkom Kenya's previously announced plans to invest 15 billion shillings in its network and services from 2017 to 2021.

In 2017, the operator invested 5 billion shillings (US$49,500,000) to build a metropolitan fibre optic network to facilitate the launch of 4G, now available in 32 cities and urban centers across Kenya.

This allowed the operator to double the capacity and coverage of its 3G network.

If secured, the new EIB loan would provide a significant proportion of the 9.34 billion shillings ($ 92,466,000) balance.

All these investments, the company said, are in line with its ongoing reorganisation efforts, including the restructuring of its CRM system.

"We are also increasing number of outlets in order to offer customers better access to Telkom Kenya products," it said.

The EIB stated that the loan application is still being evaluated.