This archive report was first published on 31 July 2019.
On July 31, 2019, Telkom Kenya announced plans to discontinue its mobile, enterprise, and carrier service businesses in Kenya, which it had entered into a joint venture with Airtel Networks Kenya Limited in February 2019.
As a result, the company will terminate the contracts of approximately 575 employees, citing redundancy due to the transaction. Telkom CEO Mugo Kibati stated that the company has notified the Communications Workers Union and sent letters to affected employees, giving them one month's notice.
However, employees whose lines of business have not been affected will be retained in a redefined Telkom organization. The Joint Venture Company may consider offering employment to some sacked employees, subject to positions being available in the new organization and meeting the recruitment criteria.
Both Telkom and Airtel Kenya have been struggling to stay afloat in a market dominated by Safaricom. The latest data shows that while Safaricom saw its net profit increase to Sh63 billion for the financial period ending March 2019, Airtel Kenya's financial position worsened.
