Telkom Kenya Plans To Lay-Off 575 Employees In Airtel Merger
In a notice sent to staff recently, Telkom Kenya’s chief executive Mugo Kabati stated that as a result of the planned merger, Telkom Kenya would discontinue the transferred business and retrench the employees that are currently working in the functions.
The announcement came two weeks after the Communications Authority of Kenya (CA) revealed that it would approve the merger which would give rise to a new operator in the country, Airtel-Telkom.
The regulator gave all parties that opposed the merger a month to submit their objections.
Airtel and Telkom Kenya had announced in February that they planned to plans to merge in order to take on Safaricom.
In March, Kenya’s Public Investment Committee raised concerns about the proposed merger, saying that there were outstanding issues in the deal that needed to be addressed before the merger is given the green-light.
The Parliamentary committee said that the deal has all the features of a scandal where private players are buying off a public company through the backdoor.
Currently, the private firm Helios is the majority owner of Telkom Kenya with a 60 percent stake, while the Government of Kenya is the shareholder of the remaining 40 percent stake.
Credit: This article originated from www.the-star.co.ke