The plan to merge Telkom and Airtel Kenya operations is gaining momentum if the notice published in dailies today is anything to go by. The announcement, which is authored by Telkom Kenya CEO Mugo Kibati echoes the February 2019 reveal that the two telcos had signed a binding agreement to combine their mobile, enterprise and carrier services to operate under a joint venture company, JV Co.
According to the CEO, Telkom will discontinue the transferred business and must, therefore, end the employment of workers who are currently deployed in the said functions. Employees tasked in performing administrative, and support tasks will also be affected.
Telkom has apprised the Communications Workers Union (COWU) of the development and already issued personal letters to the affected parties. The notes include a one month notice that will be in effect from today, July 31, 2018.
So far, Telkom will terminate the employment of approximately 575 people, following a similar feat that saw the carrier lay off 500 workers in October 2018 during a restructuring exercise.
“There will be a thirty-day consultative period to enable dialogue between the business and staff, ensuring that any ideas, suggestions, and queries are received and given due consideration. The ExCo and I commit to a fair and transparent process, in line with the law and company policy,” says CEO Mugo Kibati.
Telkom has also requested JV Co to offer employment to some of the fired employees, subject to positions being available after the official announcement of the merger and based on thorough recruitment processes.
Merger plans
According to the notice, JV Co plans to see both players establish an entity with robust operations and efficiencies, a more cohesive and far-reaching distribution network with noticeable brand presence, as well as enhanced quality of services in the Kenyan space.
The merger will also see additional investment in network expansion to accelerate the rollout of future technologies.
The transaction is still undergoing the approval process, although the CA appears to be readying an affirmation.
