Telkom Kenya CEO Clarifies Merger Deal With Airtel

Telkom Kenya’s CEO Mugo Kibati has clarified issues surrounding the plans of the operator on its journey towards growth.

The carrier is third in terms of the number of active subscribers it commands in Kenya, behind the market leader Safaricom and Airtel. Telkom is still in the process of pursuing a merger deal with Airtel as was announced a couple of months ago.

Telkom and Airtel Kenya have been in the shadow of Safaricom for a long time. While Safaricom makes billions of shillings year after year, other players continue to struggle to make ends meet. Both Airtel and Telkom launched 4G services years after Safaricom had rolled over its LTE.

The proposed merger, according to Kibati, is part of a solution to introduce fair competition against Safaricom in terms of innovation and service delivery.

The issue of dominance is not new in the Kenyan telco market. Small players want Safaricom to be officially declared as a dominant player so that measures are instituted to level the ground for all industry participants. Ultimately, the subscribers would benefit by accessing affordable services at a competitive price.

Mugo Kibati said that the idea was not to bring down a dominant player but rather to come up with a solution that would be mutually beneficial to all industry players.

Mugo further detailed the form of regulatory measures he wishes were in place to promote growth for small carriers, although his goal is the implementation of a solution that would work for all players.

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