Airtel Dismisses Claims that It Planning to Exit Kenya

Telecoms operator Airtel denied claims that it was planning to exit Kenya, Rwanda, and Tanzania but affirmed that it is open to a merger or acquisition to rescue its non-profitable businesses in Africa, including Kenya.

“We would like to categorically deny these reports which are completely incorrect, unfounded and devoid of any facts. Airtel has consistently stated that it is open to consolidation opportunities, either through acquisitions or mergers, to create sustainable businesses in Kenya, Rwanda, and Tanzania,” read a statement from the telecom.

Airtel said it was working to be either the first or second “operator in each country it operates “through market consolidation”.

According to the firm, it has participated in consolidations in the past, including the acquisition of Yu in Kenya and Millicom in Ghana all of which validated their stand that in-country consolidation had resulted in achieving better market positions.

“The customers in these markets now enjoy a superior and wider network, affordable voice and data services, and better customer care. This validates our stand that in-country consolidations have resulted in achieving better market positions, thereby benefiting customers and the industry as a whole.”

To further cement its commitment in Kenya, Airtel disclosed that it is in the process of investing 2G, 3G, and 4G technologies and putting up over 300 sites over the next few months to improve coverage.

Airtel Africa revenues grew by 2.8 percent Year-on-Year with net revenues growing 6.3 percent on the back of an increase in data penetration.

Data traffic grew by 83.8 percent while Airtel Money transaction values grew over 30 percent Year on Year.

“Our efforts to create a profitable business model for Africa continues and we have delivered EBITDA margin of 32.1pc, with margins up 9.1pc Y-o-Y. This has also now enabled the business to sustainably generate positive free cash flows. We remain focused on accelerating growth through the three pillars of increasing mobile penetration, growing the data business and expanding the Airtel money base,” further read the statement.

Airtel is currently the second-largest operator by subscription with 15.3 percent market share as at June 2017.