Telkom Kenya, Airtel announce plans for a Merger


Telkom Kenya Limited and Airtel Networks Kenya limited have   announced the  signing of a binding agreement that will see the shareholders of the two companies enter into an agreement to merge their respective Mobile, Enterprise and Carrier Services businesses in Kenya.

The announcement made on Friday will help the companies operate under a joint venture company to be named Airtel-Telkom.

Commenting on the agreement, National Treasury Cabinet Secretary, Henry Rotich said: “This move is well aligned with the government’s agenda to optimise the value of the assets that it holds in trust, on behalf of Kenyans, while cementing the country’s position not only as a regional business hub but also as an international investment magnet.”

ICT Cabinet Secretary, Joe Mucheru commented: “ICTs remain a vital link to achieving Kenya’s economic goals and our national development agenda, particularly with respect to service delivery. Such mergers have had positive impact on the development of the sector and service levels to consumers in other markets. Similarly, we look forward to this merger leading to the introduction of new technologies and telecommunication products which will, in turn, support the growth of other business sectors of our economy, thereby spurring national production to meet the growing demand locally and beyond.”

The merged company will be chaired by Telkom Kenya Limited CEO, Mugo Kibati while Airtel Networks Kenya Chief Executive, Prasanta Sarma, will be appointed Chief Executive Officer.

The finalisation and closure of the transaction is subject to approval by the relevant authorities.

As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale and efficiency, larger distribution network and strategic brand presence, thereby enhancing the range and quality of products and service offerings in the market, and greater choice and convenience to the consumer.

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