The Telkom Kenya and Airtel merger which kicked off in February last year has fallen through with the entities citing challenges in getting regulatory approvals.
The two telcos had entered into merger talks in February with a view of challenging the market leader in the telecommunication industry in this case Safaricom. Under the deal, they were to merge their Mobile, Enterprise and Carrier Services businesses in Kenya, a move that would have created a new business called Airtel-Telkom.
The competition Authority (CAK) approved the deal in December, however, the National Treasury was said to be holding back the merger as the government assessed the viability of the sale of its 40 per cent stake in Telkom.
As a result, the notice of redundancy issued by the Company on July 31, 2019, which would have sent home at least 575 workers, has been withdrawn which is a boon to the employees considering the times we are living in.
Telkom Kenya CEO Mugo Kibati, had this to say, “After carefully reviewing the available options, Telkom has opted to adopt an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction.”