Airtel, Telkom Kenya to retain at least 349 employees after merger

– Airtel and Telkom agreed to work as a single entity in February 2019

– The new company will be called Airtel-Telkom and will be required to honour all existing government contracts

– The organisation will be chaired by Telkom Kenya CEO Mugo Kibati

The Competition Authority of Kenya has approved the merger between Airtel and Telkom in a deal that could challenge the dominance of telecommunications market leader Safaricom.

India’s Bharti Airtel agreed to work with Telkom Kenya as a single entity on Friday, February 7 after a series of consultations.

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Telkom Kenya CEO Mugo Kibati (left) and Airtel Kenya CEO Prasanta Das Sarma at a past event. Photo: Daily Nation.
Source: UGC

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In a gazette notice seen by TUKO.co.ke on Friday, December 13, the competition watchdog gave the green light for the merger but gave a raft of conditions that must be adhered to.

“The merged entity shall ensure that at least 349 of the 674 employees of the target are retained as follows: 120 employees by the merged entity for a period of two years from the date of the implementation of the merger, 114 employees by Telkom Kenya Limited for a period of two years from the date of the implementation of the merger and 115 employees to be absorbed by the network partners of the merged entity,” CAK boss Wang’ombe Kariuki said in a statement.

Telkom Kenya CEO Mugo Kibati will chair the new entity Airtel-Telkom. Photo: CIO East Africa.
Source: UGC

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The new company will be called Airtel-Telkom and will be required to honour all existing government contracts.

The merged entity will not be allowed to sell or transfer some of its operating and frequency spectrum licences until the expiry of the duration.

Airtel Kenya CEO will be the new chif executive of the entity. Photo: Corporate Watch.
Source: UGC

“Upon expiry of the term of the merged entities’ operating license, the spectrum in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the government of Kenya (GoK),” the notice said.

The agreement between the two telcos states that Telkom Kenya Limited’s real estate portfolio and specific government services will not form part of the combined entity.

Netizens shared their views on social media after the merger was announced.

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