This archive report was first published on 5 August 2020.
On August 5, 2020, Telkom Kenya announced that it would no longer pursue a proposed merger with Airtel Networks Kenya Limited.
According to Telkom Chief Executive Mugo Kibati, the company had been working to secure necessary approvals from regulators but was hindered by 'red tape.'
"Following the announcement on February 8, 2019, of the intended merger of Telkom Kenya's mobile, enterprise and carrier businesses with Airtel Networks Kenya Limited, the company has been pursuing the various approvals required to complete the transaction," Kibati said.
However, Telkom has now opted to adopt an alternative strategic direction, citing the accelerated digital transformation brought about by the COVID-19 pandemic as a key factor in its decision.
As a result, Telkom has withdrawn the Notice of Redundancy issued by the company on July 31, 2019, meaning that employees who were set to be laid off due to the merger will keep their jobs.
"The transformation dynamic also presents Telkom with a strategic advantage, to better position its infrastructure asset base and services, to support this digitization and, in the mid to long term, bridge the consumer digital divide; connecting the unconnected by way of cutting-edge technologies such as Loon," Kibati stated.
