Bharti Airtel's Kenyan subsidiary to merge with Telkom Kenya
The new business will be called Airtel-Telkom.
Bharti Airtel said its Kenyan subsidiary, Airtel Networks Kenya, and Telkom Kenya will merge their respective mobile, enterprise and carrier services businesses, to create a new joint venture in the East African nation.
The new business will be called Airtel-Telkom, which will create an integrated telecommunications firm, offering greater choice and convenience for consumers and business customers.
Airtel-Telkom will be up to 49 percent owned by Telkom Kenya with the balance being owned by Airtel.
Post-merger, the entity would become the second-largest telecom operator in Kenya after Safaricom with a market share of 64.2 percent. This move is in line with Bharti Airtel’s business strategy for the African continent.
“Both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence. The entity will invest in networks to further accelerate roll out of future technologies,” Bharti Airtel said in a media statement.
The enterprise and carrier services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers, including both large corporations and SMEs who would have access to a diverse portfolio of world-class solutions, the company said.
Despite the merger, the two companies will continue to operate distinctly in the Kenyan market.
Bharti Airtel has 403 million subscribers across its international operations in 18 Asian and African countries.