This archive report was first published on 30 September 2019.
Published on September 30, 2019, Airtel's East African operations incurred a total loss of $46.5 million (KSh4.8 billion) in the last financial year.
While Airtel Uganda remains the only profitable business of Bharti Airtel in East Africa, the Ugandan subsidiary's success is a stark contrast to the company's poor performance in Kenya and Tanzania.
Airtel Kenya posted a loss of $27.43 million in 2018, a significant improvement from the $59.5 million loss in 2017. However, Airtel Tanzania's losses narrowed by $31.16 million in 2018, but its liquidity ratios remain wanting.
According to reports, Airtel Tanzania has accumulated total losses of $436.6 million since the start of the business, with a negative asset balance and a 2018 current ratio of 0.3. The subsidiary's market share also sank from 27% in 2017 to 25% in 2018.
Despite these challenges, Airtel has shown signs of improvement in the East African market. The company's market share in Kenya increased to 39% in Q2 2019, up from 25% in 2017 and 35.8% in Q1 2019. The ongoing merger with Telkom is expected to further improve Airtel's market share in Kenya.
