Anticipated Airtel-Telkom Merger Suspended By CA Over Graft

The Community Authority of Kenya (CA) has suspended the much anticipated merger between Airtel and Telkom. The suspension was implemented after the Ethics and Anti-Corruption Commission (EACC) opened an investigation against draft allegations in the proposed Airtel -Telkom merger.

Before Airtel and Telkom proposed their merger, Telkom and the treasury was under investigation after the government sold part of the Telkom stake to the French firm, Orange. The shares were sold to Helios Investment, a UK firm which currently holds 60% shares of Orange. The other 40% is owned by the government.

The CA director, Christopher Wambua who is in charge of communications and public affairs said “We have advised the parties that in light of government shareholding in Telkom Kenya, approval shall only be granted once all the conditions set out by the Authority are fulfilled and the transaction is cleared by the EACC.“

Some of the people under the graft investigation include managers at Telkom Kenya, CA, treasury and Competition Authority of Kenya (CAK). Due to public interest, the EACC requested the suspension of the merger until ongoing investigations are completed. The charges include misappropriation of public funds in the process of recapitalization and restructuring of balance sheets.