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Safaricom Blocks Airtel-Telkom Merger Over Unpaid Debt and Spectrum Imbalance

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 4 September 2019.

On September 4, 2019, Safaricom's acting CEO Michael Joseph released a statement accusing Telkom and Airtel of owing the company over KSh 1.2 billion.

The debt, amounting to KES 1,297,448,468.88, was incurred for the provision of various services including interconnection, co-location, and fibre services.

According to Joseph, the payment obligations should be settled in full before the transfer of business is effected.

Safaricom also raised concerns over the imbalance of frequencies allocation, citing a deal reached in 2016 that denied it the ability to increase its spectrum for fair competition.

However, Telkom Kenya Chief Executive Mugo Kibati accused Safaricom of being afraid of competition, stating that its dominance led to over-pricing and a stagnant telecoms domain.

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