This archive report was first published on 23 October 2019.
Published on October 23, 2019, the Cabinet's delay in approving the merger between Airtel and Telkom Kenya is causing significant harm to the two companies' businesses.
Telkom Kenya Chief Executive Mugo Kibati told the Senate Committee on ICT that the operator had approached the Cabinet for approvals out of courtesy, despite already receiving clearance from the Attorney General.
“The AG was clear that we did not require Cabinet approval but we went the extra mile to ask the Executive for approval. We have not received feedback,” Kibati said.
The two companies hope to conclude the deal by the end of this year, but the delay is putting their strategic plans on ice. Airtel and Telkom announced the merger plans in February as a survival move to form a formidable competitor to market leader Safaricom.
The Senate committee’s Chairman Gideon Moi said the legislature would endeavour to put in place enabling laws and policies to ensure the ICT sector remains competitive and innovative.
