This archive report was first published on 13 December 2019.
Airtel and Telkom Kenya Unite: A New Entity with Conditions ¶
On February 7, 2019, India's Bharti Airtel agreed to work with Telkom Kenya as a single entity, marking a significant development in the telecommunications market.
According to a gazette notice published on December 13, 2019, the Competition Authority of Kenya (CAK) has approved the merger between Airtel and Telkom Kenya, subject to certain conditions.
The new entity, Airtel-Telkom, will be chaired by Telkom Kenya CEO Mugo Kibati and will be required to honour all existing government contracts.
One of the key conditions of the merger is the retention of at least 349 employees, with 120 employees to be retained by the merged entity for a period of two years, 114 employees to be retained by Telkom Kenya Limited for a period of two years, and 115 employees to be absorbed by the network partners of the merged entity.
Additionally, the merged entity will not be allowed to sell or transfer some of its operating and frequency spectrum licences until the expiry of the duration.
Upon expiry of the term of the merged entities' operating license, the spectrum in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the government of Kenya (GoK).
The agreement between the two telcos states that Telkom Kenya Limited's real estate portfolio and specific government services will not form part of the combined entity.
Netizens have shared their views on social media after the merger was announced.
