Kenyan unit of Airtel has no plan to merge with Telkom
The Kenyan unit of Bharti Airtel has abandoned plans to merge with Telkom Kenya to take on the market leading operator Safaricom, industry and government.
"Airtel developed cold feet," said an industry source who declined to be named. Airtel, owned by India's Bharti Airtel, did not respond to a request for comment.
Joe Mucheru, the minister for information and communication, said he was aware of the walkout by Airtel.
The proposed merger broke down over a number of issues, particularly Airtel resisting making a commitment to significant future investments in the company, the industry source said.
Data from the regulator showed Airtel had increased its users by more than a million in the last quarter of last year, benefiting from a call by the opposition for its supporters to boycott Safaricom.