India’s Bharti Airtel, the owner of mobile operator Airtel Kenya, has received approval from the Kenyan government to maintain its stake in the company at 95%, according to Business Daily Africa.
This is despite ownership restrictions stating that…
India’s Bharti Airtel, the owner of mobile operator Airtel Kenya, has received approval from the Kenyan government to maintain its stake in the company at 95%, according to Business Daily Africa.
This is despite ownership restrictions stating that foreign investment in local telcos is currently limited at 80%.
The previous owner of Airtel Kenya, Kuwait-based Zain Group, had already been granted, in early 2009, a three-year grace period to grow its local shareholding in the company to at least 20%, explained the newspaper.
When Zain sold its African assets to Bharti Airtel in June 2010 for US$10.7bn, it also handed over the responsibility to meet FDI requirements.
This new extension is reportedly aimed at allowing Airtel Kenya to return to profitability before selling a 15% stake in the business, which could be valued at approximately KSh5.2bn (US$62.6m).
Airtel Kenya is currently number two in a market largely dominated by Safaricom.
Sources at the Communications Commission of Kenya were quoted telling Business Daily Africa that Bharti Airtel has until 2015 to bring in local shareholders.
Airtel Kenya and the Communications Commission did not respond to requests for comment before the press deadline.
