Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The Authority also directed Telkom Kenya Limited to make good effort to remedy its commercial obligations towards Eaton Towers Kenya Limited.

Kenya

Airtel-Telkom merger approved by CA, combined entity to retain at least 349 employees

Telkom is required to absorb 114 employees for a period of two years from the date of the merger with the remaining 115 set to be absorbed by, “network partners of the merged entity.”

NAIROBI, Kenya, Dec 13 – The Competition Authority (CA) has authorized the proposed merger of Airtel and Telkom with the requirement that the combined entity retains at least 349 of the 674 employees currently working for both entities.

The approval was published in the Kenya Gazette released on Friday by CA Director General Wang’ombe Kariuki.

Of the 349 employees to be retained, 120 must be engaged by the combined entity for a two-year period from the merger date.

Telkom is required to absorb 114 employees for a period of two years from the date of the merger with the remaining 115 set to be absorbed by, “network partners of the merged entity.”

Airtel and Telkom controlled 21.4 and 8.9 per cent of the telecommunication industry market share, Safaricom retaining its dominance at 65.4 per cent according to CA data published in October 2018.

The two mobile network operators posted a customer subscriber base of 9.7 million and 3.8 million compared to Safaricom’s 29.7 per cent.

The merged telco will revert to CA two spectrum – 900MHZ and 1800MHZ – apon the expiry of the term of the joint operating license.

CA also restricted the merged entity, or part of it, “from entering into any form of sale agreement within the next five years.”

The merged telco will have access to 4,204 kilometers of fibre managed by Telkom on the government’s behalf under the terms the infrastructure has been leased to Telkom.

Airtel-Telkom will be required to file a detailed compliance report annually to CA to verify conformity to merger terns set out by the regulator.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...