The merger process between the two Kenyan mobile operators Airtel and Telkom is on course. Last week, Telkom Kenya revealed plans to move its assets from its head office in Telkom Plaza to Airtel Kenya premises along Mombasa road.
However, Telkom, the third largest phone operator in Kenya will not pass on its debt to Airtel Kenya as stated on the notice to the press, “The proposed transferee (Airtel) is not assuming nor does it intend to assume all the liabilities incurred in the transfer business by the proposed transferor (Telkom)”.
Market participants have welcomed the union saying it makes business sense for the two firms to operate as one entity. The merger will see the two companies increase their market share of mobile subscriptions to 31 percent. The new entity will be referred to as Airtel –Telkom and will be chaired by Telkom’s CEO Mugo Kibati while Airtel’s top executive Prasanta Das Sarma will serve as CEO.