This archive report was first published on 15 December 2019.
On December 15, 2019, the Competition Authority of Kenya (CAK) gave its greenlight for Airtel and Telkom Kenya to merge, but with a condition that they do not make any new sale agreements over the next five years.
This move is seen as a bid by the regulator to ensure the telcos stick to their proposal of doing business as a combined entity and not use the merger as a stepping stone to other speculative financial deals.
According to a notice by the regulator, the merged entity, or part of it, is restricted from entering into any form of sale agreement within the next five years.
However, in the event of any indication of a failing firm within the period, the Communications Authority shall conduct a forensic audit at the cost of the merged entity.
The decision means that the merged business will not be able to sell itself or part of its units over the next five years, whether or not suitors emerge.
