Telkom Kenya has opted out of its proposed merger with Airtel, a decision that has been mutually agreed with Airtel Networks Kenya Limited.
“Considering the challenges experienced in getting all the approvals required to complete the transaction, the company has simultaneously been evaluating alternative strategic options to strengthen its position and offering, within the market, as a genuine alternative for the consumer, enabling us to entrench our current brand as Kenya’s preferred data network service provider,” reads, in part, a statement from Telkom Kenya.
Consequently, the notice of redundancy issued by the firm in July 2019 is withdrawn and earlier envisaged redundancies no longer apply.
In February 2019 Airtel Networks Kenya unit agreed to buy Telkom Kenya, Kenya’s third-largest mobile operator, which the state still has a 40% shareholding after a majority stake was sold in 2007.
According to the latest statistics from the Communication Authority of Kenya, Airtel gained by 0.7 percentage points to post a 26.6% market share recording a 4% increase in mobile subscribers.
Airtel subscribers grew from 14,118, 569 in December 2019 to 14,682,293 in March 2020.
Telkom Kenya lost 0.4 percentage points to post a market share of 5.8% with 3,190,661 subscribers.