Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom’s Maziv deal gets makeover ahead of crucial hearing

      18 July 2025

      Cut electricity prices for data centres: Andile Ngcaba

      18 July 2025

      Takealot taps Mr D to deliver toys, pet food and future growth

      18 July 2025

      ‘Oh, Ani!’: Elon’s edgy bot stirs ethical storm

      18 July 2025

      Trump U-turn on Nvidia spurs talk of grand bargain with China

      18 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Telkom Kenya, Airtel seek merger to challenge Safaricom

    Telkom Kenya, Airtel seek merger to challenge Safaricom

    By Agency Staff8 February 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Bharti Airtel’s Kenyan unit has agreed to combine operations with Telkom Kenya, creating the second-largest telecommunications operator in the East African nation after Safaricom.

    Telkom, which is 60% owned by Helios Investment Partners and the rest by the Kenyan government, will have an option of taking as much as 49% of the new company, it said in an e-mailed statement on Friday. The companies will merge mobile, enterprise and carrier services into the new entity to operate as Airtel-Telkom, according to the statement. Telkom’s real estate portfolio and government services are not part of the deal.

    The company will take on industry leader Safaricom, which is partly owned by Johannesburg-based Vodacom Group and had 29.9 million users by end of September, according to the Communications Authority. That translated to a market share of 64.2%, compared to Airtel’s 22.3%.

    The plan to merge is a sensible option, given Safaricom’s ongoing success, but could be difficult to get past regulators…

    Safaricom, East Africa’s biggest company by valuation, is dominant in the lucrative mobile money transaction business, which rose almost 19% to 1.59 trillion shillings (US$15.8-billion) in 2018, accounting for 78% of such transactions, according to the regulator.

    The merged company will be chaired by Telkom CEO Mugo Kibati, while his Airtel counterpart, Prasanta Sarma, will be its executive head, according to the statement.

    The deal’s closure is subject to regulatory approval.

    ‘Political decision’

    “Airtel and Telkom Kenya’s plan to merge is a sensible option, given Safaricom’s ongoing success, but could be difficult to get past regulators, as it would effectively create a duopoly,” said John Davies, a Bloomberg Intelligence analyst. “We think sectoral regulation should give better consumer outcomes, though ultimately it’s a political decision.”

    “It’s positive for the two to merge because this becomes a stronger competitor for Safaricom,” Tracy Kivunyu, an analyst at Exotix Capital, said by phone from the Kenyan capital, Nairobi. “It becomes a two-player market, which is a good thing since Airtel was able to get market share, unlike Telkom, since they have a similar customer profile.”

    Safaricom shares fell as much as 2% in Friday’s trade, the most in a month and halting a 10-day rising streak.  — Reported by Bella Genga, (c) 2019 Bloomberg LP



    Airtel Kenya Bharti Airtel Safaricom Telkom Kenya top Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleApple warns app developers over use of screen recording features
    Next Article Bezos selfie leak triggers alarm for billionaires everywhere

    Related Posts

    Vodacom’s Maziv deal gets makeover ahead of crucial hearing

    18 July 2025

    Mobile money lifts Africa savings to decade high

    17 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025
    Company News

    Vertiv to acquire custom rack solutions manufacturer

    18 July 2025

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.