NAIROBI, Aug 29 (NNN-AGENCIES) — Kenya’s anti-graft Ethics and Anti-Corruption Commission (EACC) has suspended a planned merger of Telkom Kenya and Airtel Kenya pending a probe into misappropriation of funds at Telkom, an EACC spokesman said.
India’s Bharti Airtel had said in February its unit Airtel Networks Kenya Ltd had agreed to merge with Telkom Kenya Ltd, the East African nation’s smallest telecom operator.
Industry sources said that Bharti Airtel was in talks to buy Telkom Kenya to create a stronger challenger to market leader Safaricom.
“They are conducting investigations into allegations of misappropriation of public funds in the process of privatisation, recapitalisation and restructuring of balance sheets of Telkom Kenya limited,” EACC spokesman Yassin Amaro said. — NNN-AGENCIES
