Airtel-Telkom: CAK approves merger but with some restrictions

Airtel-Telkom merger approved.Image|Courtesy

The Competition Authority of Kenya (CAK) has approved the merger between telecommunication companies –Airtel Kenya and Telkom Kenya, with a raft of measures owing to the merger.

Part of the restrictions as red out in the Kenya Gazette notice dated Friday 13, 2019 include employee retention, keeping existing contracts, keeping existing license until expiry among others.

"The merged entity shall ensure that at least three hundred and forty nine (349) of the six hundred and seventy four (674) employees of the target are retained as follows —

(a) 120 employees by the merged entity for a period of two years from the date of the implementation of the merger (b) 114 employees by Telkom Kenya Limited for a period of two (2) years from the date of the implementation of the merger; and (c) 115 employees to be absorbed by the network partners of the merged entity," read the notice in part.

CAK manager Wang'ombe Kariuki added that the merged company will not be allowed to enter any sale deal for the next five years.

"Upon expiry of the term of the merged entities' operating license, the spectrum in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the Government of Kenya (GoK)," the notice says.

"However, in the event of any indication of a failing firm within the period, the Communications Authority shall conduct a forensic audit at the cost of the merged entity," added the manager.

See also: Airtel Kenya 01xx prefixes await CAK approval

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