Bharti Airtel's Kenyan subsidiary, Airtel Networks Kenya, has announced that it will merge its consumer and enterprise operations with Telekom Kenya, to create a new joint venture in the East African nation…
Bharti Airtel's Kenyan subsidiary, Airtel Networks Kenya, has announced that it will merge its consumer and enterprise operations with Telekom Kenya, to create a new joint venture in the East African nation.
Airtel-Telekom, as the JV will be known, will be up to 49 per cent owned by Telekom Kenya, with Airtel owning the rest of the venture.
The newly 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.
Telekom Kenya is 40 per cent owned by the Kenyan government, and news of the merger was welcomed by Kenyan authorities.
“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 Kenya's National Treasury Cabinet Secretary, Henry Rotich.
Despite the official merger, the two brands will continue to operate distinctly in the Kenyan market.
Airtel has 403 million subscribers across its international operations in 18 Asian and African countries.
Also in the news:
Airtel begins LTE rollout in 10 Indian cities
Africa's 4G lottery
Airtel eyes African expansion