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Telkom will still control its ICT unit even after Airtel merger, says CA

BY Soko Directory Team · July 16, 2019 10:07 am

The merging between Telkom Kenya and Airtel Kenya will not affect the Telkom’s ICT unit as the company will still have control over it.

The Communications Authority of Kenya (CA) has hinted through a notice that the merger would involve the two companies sharing and transferring services but Telkom will gain from being a shareholder at the Airtel Networks Kenya.

“The applicants have…made an application to the Communications Authority of Kenya of their intent to combine their telecommunication businesses in Kenya, through the transfer of Telkom Kenya’s mobile, enterprise and carrier business to Airtel Networks Kenya Limited in exchange for Telkom Kenya gaining a shareholding in Airtel Networks Kenya,” said Francis Wangusi, the director-general CA.

“The parties have further indicated that upon approval of the proposed merger, Airtel will thereafter be renamed Airtel-Telkom, while Telkom will continue operating in the ICT sector providing certain other services to select customers,” Wangusi added.

CA had announced that it is open to any objections concerning the merger before it gives the final go-ahead to the companies. The opposing parties are supposed to make their submissions within a month.

According to Mr. Wangusi, the regulator has intentions of granting approval for the merger provided the companies and the parties involved fulfill certain conditions as required by CA.

Telkom Kenya, which has some of its stakes owned by the government, had earlier segregated its National Optic Fibre Backbone (Nofbi), in order to provide a secure communication system to the government.

The company has been providing fiber network services to all the 47 counties across the country. The company will continue handling the services owing to the sensitivity of the information it transmitted for the state.

Having passed through 58 towns in 35 counties and covered 4300 kilometers, the public-funded project will not be handed to a party that the government has no full control over.

The merging is set for next month and the new company will be called Airtel-Telkom.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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