Telkom Kenya Limited and Airtel Networks Kenya Limited have entered into a merger and will now operate under a joint venture company to be called Airtel – Telkom.
Under this new agreement,Telkom’s real estate portfolio and specific government services will not form part of the combined entity.
The agreement will also not affect the leadership, management, legal, organisational and staffing structures of the individual entities,
The merged company will be chaired by Telkom CEO, Mr. Mugo Kibati while Airtel CEO, Mr. Prasanta Sarma, will be appointed Chief Executive Officer.
The finalisation and closure of the transaction is however subject to approval by the relevant authorities.
Treasury Cabinet Secretary, Mr. Henry Rotich applauded this move which he said was in line with the government’s development agenda.
“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,” said Rotich.
ICT Cabinet Secretary, Mr. Joe Mucheru said the merger will have a positive impact on the development f the ICT sector.
“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,” said Mucheru.