trending Market Intelligence /marketintelligence/en/news-insights/trending/mXL-6-kunHsa32DAD8O8sg2 content esgSubNav
In This List

Kenya's anti-graft agency hits pause on Telkom Kenya, Airtel merger

Blog

Europe: 5 key OTT trends to watch in 2022

Blog

Broadcast deal market recap 2021

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix


Kenya's anti-graft agency hits pause on Telkom Kenya, Airtel merger

The Communications Authority of Kenya suspended the planned merger of mobile operators Telkom Kenya Ltd. and Airtel Kenya Ltd. pending a probe into allegations of misappropriation of public funds and how the deal was brokered, Africa's Business Daily reported.

The merger was halted following an order from the Ethics and Anti-Corruption Commission, which is investigating whether public funds were lost in the process of recapitalization and restructuring the balance sheet of Telkom Kenya in 2012, as well as the merger terms of the two carriers.

A separate investigation is also underway to determine the circumstances under which the Kenyan government ceded further ownership of Telkom Kenya. The state in 2012 yielded its control of Telkom Kenya to France Telecom, now known as Orange SA, which later sold its 60% stake to private equity firm Helios Investment Partners LLP.

The anti-graft agency is looking into the likely loss of key strategic assets and taxpayer funds after Telkom Kenya, one of Kenya's biggest property owners due to its legacy as a state-owned enterprise, put up for sale properties worth 3.87 billion Kenyan shillings in a bid to raise capital for the merger. The company also sold 723 towers to American Tower Corp. in 2018.

In response to the probe, Telkom Kenya said it has provided all requested information and that it will continue to cooperate with the commission on the matter.

Airtel Kenya, a subsidiary of Indian telco giant Bharti Airtel Ltd., agreed to buy Telkom Kenya in February to form a stronger rival to market leader Safaricom PLC.

As of Aug. 28, US$1 was equivalent to 103.41 Kenyan shillings.