This archive report was first published on 14 December 2019.
On December 14, 2019, the Competition Authority of Kenya (CAK) announced its approval of the Airtel-Telkom merger, following months of deliberation.
The merger involves Airtel Networks Kenya acquiring the mobile operations, enterprise, and carrier service business of Telkom Kenya Limited.
According to the Kenya Gazette notice, the merged entity is prohibited from selling or transferring operating and frequency spectrum licences within the remaining duration of the said licences.
Additionally, upon the expiry of the term of the merged entities' operating license, the spectra in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the Government of Kenya (GoK).
CAK has also restricted the merged entity from entering into any form of sale agreement within the next five years.
The merged entity is required to honour all existing contractual terms with government entities and retain 349 employees.
Furthermore, the new entity will have access to 4,204 kilometres of fibre managed by Telkom on behalf of the government at the current market rates, with no preferential rates unless stated in existing contracts.
The merged entity is expected to annually furnish the Authority with a detailed report on compliance with the above conditions.
