Airtel Kenya is looking for Kenyan investors to acquire a 30 per cent stake in the telecom as part of their efforts to comply with the revised ownership regulations that aim to promote local ownership of ICT companies.
In April of last year, the government introduced a licensing policy requiring telecoms firms to achieve at least 30 per cent local ownership by March 2024. This policy replaced the previous minimum ownership threshold of 20 per cent, which had been in effect since 2008.
Airtel Africa’s CEO, Segun Ogunsanya, revealed on Thursday that the company is in discussions with the Communications Authority of Kenya (CA) and the Ministry of Information and Communications Technology (ICT) about selling the local unit, with the possibility of bringing in a strategic investor or listing on the Nairobi bourse.
There are a number of options. We can identify a local shareholder or we can also list it on Kenya’s stock exchange. We keep discussing with the regulator as to which one is the best vehicle to ensure there is local participation in the business. We commit to getting this done before the deadline next year, March 2024.
Airtel Africa’s CEO – Segun Ogunsanya
Airtel Kenya had been granted an exemption from the previous regulation that required a 20% minimum shareholding, which allowed billionaire investor Naushad Merali to sell a substantial portion of his shares in the company for billions of shillings without breaking the law.
However, the telecom has indicated that it will not follow this route. Instead, the company may consider selling its stake directly to billionaires or high-net-worth investors, such as local pension funds.
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