The Competition Authority of Kenya (CAK) has approved the proposed merger of Airtel Kenya and Telkom Kenya.
In a gazette notice published today, 13th December, the CA announced the approval but with some specific conditions.
The merged entity shall not sell or transfer their operating and frequency spectrum licences within the remaining duration of their licences.
If the merged entity’s licence expires, the 900MHZ and 1800Mhz spectrum acquired from Telkom, shall revert to the government.
The merged entity is restricted from entering into any form of sale agreement within the next five years.
The merged entity shall honour all the existing contractual terms with government entities.
It shall only access the 4,204km of fibre managed by Telkom on behalf of the government at the current market rates and no preferential rates shall be accorded to them unless provided for in existing contracts.
The new entity shall not enjoy any preferential access to use capacity on the 4.204km of fibre managed by Telkom.
The firm shall ensure that at least 349 out of the 674 employees are retained.
The merged entity to annually furnish the Authority with a detailed report on compliance with the above conditions.
This merger comes after a long process since the initial announcement of the same. Back in August the Communications Authority suspended the merger between the two companies but they hinted that the merger was supposed to be done before 2020.
The company, which will be named Airtel-Telkom, will be required to honour all existing government contracts.