This archive report was first published on 5 August 2020.
On August 5, 2020, Telkom Kenya announced that it had abandoned its plans to merge with Airtel Networks Kenya, a move that will spare hundreds of employees who were at risk of redundancy.
The decision comes after Telkom's Chief Executive, Mugo Kibati, carefully reviewed the available options and opted to adopt an alternative strategic direction.
According to Kibati, the notice of redundancy issued by the company on July 31, 2019, is withdrawn, and the earlier envisaged redundancies no longer apply.
Earlier this year, Telkom had fired 575 staff and asked them to reapply to the new outfit that would have been known as Airtel-Telkom.
The planned merger between the two mobile firms had been in the works since February 8, 2019, but faced several challenges in getting the necessary approvals.
Despite the challenges, Telkom had been evaluating alternative strategic options to strengthen its position in the market and offer a genuine alternative to consumers.
However, the company has now decided to pull out of the merger plan due to its confidence in its new direction, which was accelerated by the digital transformation brought about by the Covid-19 pandemic.
