More Africa NewsKenya: Telkom Kenya could retain name for ICT unit after Airtel merger

July 15, 2019by myles

Telkom Kenya could still retain its brand name for its ICT business even after the merger with Airtel Kenya, Business Daily reported, citing a regulatory notice. The two firms have sought approval from the Communication Authority of Kenya (CA) to merge their mobile, enterprise and carrier services to form a joint venture to be named Airtel-Telkom. 

CA director-general Francis Wangusi said the parties have indicated that upon approval, Airtel will thereafter be renamed Airtel-Telkom, but Telkom will continue operating in the ICT sector providing certain other services to selected customers. The CA has asked any parties opposed to the merger to make their submissions within a month. Wangusi said in the notice that CA intends to grant approval for the merger, subject to the parties fulfilling certain conditions.

Telkom had already hived off its fibre network business to give the government a secure communication system, sources familiar with the transaction had revealed. It operates the National Optic Fibre Backbone (Nofbi), which provides telecommunications connectivity in all 47 counties. People familiar with the transaction told the Business Daily that the government, which holds a 40 percent stake in Telkom Kenya, had ruled out handing control of the strategic asset to a party that it did not have control over, due to the sensitivity of communications and state documents it is involved in transmitting.


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