Telkom has announced that it stopped looking into merging its business in Kenya with Airtel. The operator has faced different challenges, notably in terms of getting the approvals required to complete the merger. The company will now embark on a new phase and will aim to establish itself as a main player in the digital era.
“Our confidence in Telkom’s new direction is further bolstered by the accelerated digital transformation brought about by the recent dynamics of the COVID-19 pandemic, that has made both businesses as well individuals, acutely aware of the need to review direction, with respect to how we do things, and the need to step-up. This accelerated digital transformation is particularly important within the telecommunications sector, owing to an increased demand for data and broadband. Consequently, the Notice of Redundancy issued by the Company on 31st July 2019 is withdrawn and the earlier envisaged redundancies no longer apply,” said Mugo Kibati, Chief Executive Officer, Telkom.
This brings an end to the process that started in February 2019. The deal, whose terms have never been disclosed, would have created Kenya’s largest telco, beating Safaricom, which controls more than 60% of Kenya’s mobile subscriptions market.
