A Kenyan parliamentary committee has launched an investigation into the proposed merger between Airtel and Telkom Kenya, citing unresolved issues that could indicate improper privatization of a state-owned entity.
The committee, led by Narok North MP Moitalel ole Kenta, is examining the 2014 Public Investment Committee (PIC) report on Telkom Kenya's restructuring, which was approved by parliament in 2015. The report highlighted concerns about the 2007 privatization of Telkom, where France Telecom (now Orange S.A.) acquired a 51% stake for Sh26 billion, but the government received only Sh2.5 billion of the intended Sh4.9 billion.
The committee has summoned representatives from the National Treasury, Ethics and Anti-Corruption Commission, State Law Office, and other agencies to address gaps in implementing the 2014 report. Nominated MP Godfrey Osotsi, vice-chair of the panel, stated, "We are handling the matter. We have invited all those mentioned in the report and the implementing agencies to establish the status of the implementation of the report. We want to know from these agencies why the report has never been implemented."
The merger, which would create Airtel-Telkom, faces scrutiny for potentially enabling private interests to acquire public assets at undervalued prices. The committee aims to clarify whether the deal threatens fair competition in Kenya's telecommunications sector.
