This archive report was first published on 14 December 2019.
Published on December 14, 2019, the Competition Authority of Kenya (CAK) has given the green light to Airtel and Telkom Kenya to merge their operations, paving the way for a duopoly in the telecommunication sector.
The merged entity, Airtel-Telkom, will now compete with Safaricom, the market leader with a 63.5% market share as of June this year, according to data from the Communications Authority of Kenya.
CAK has imposed tough conditions on the merger, including a requirement not to sell the merged entity for a period of five years. However, in the event of a failing firm, the Communications Authority shall conduct a forensic audit at the cost of the merged entity.
The merged entity will have 349 employees, a fraction of the over 700 employees that Telkom Kenya had when the merger plans were announced earlier this year.
CAK has also approved the plan by the two firms to lay off a substantial chunk of employees, with Telkom Kenya's CEO Mugo Kibati assuring that former employees will be catered for and may even get a job at the new Telkom-Airtel venture.
However, the merger still hangs in limbo as it awaits approval from the Communications Authority of Kenya, which is currently facing a leadership crisis following the nullification of the board of directors appointed earlier this year.
