This archive report was first published on 5 August 2020.
On August 5, 2020, Telkom Kenya announced it was no longer pursuing a proposed joint venture transaction with Airtel Networks Kenya, a subsidiary of India's Bharti Airtel.
As reported in February 2019, Airtel Networks Kenya had agreed to acquire Telkom Kenya, the smallest operator in Kenya, with the state still holding a 40% shareholding after a majority stake was sold in 2007.
However, Telkom Kenya has now chosen to adopt an alternative strategic direction, citing a mutual agreement with Airtel Networks Kenya Limited.
This decision comes as Telkom Kenya has launched Loon, a network of stratospheric balloons designed to bring internet connectivity to rural and remote communities worldwide.
With Loon, Telkom Kenya has the potential to expand its internet subscription by 4.8 million users, offering up to 4G-LTE speeds through its solar and wind-powered balloons.
The balloons have been entering Kenya's airspace since March 2020, after the Kenya Civil Aviation Authority approved their entry following two years of contention.
According to the latest statistics from the Communication Authority of Kenya, Airtel gained 0.7 percentage points to post 26.6 percent market share, while Telkom Kenya lost 0.4 percentage points to post a market share of 5.8 percent.
via The Star
