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.
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