Airtel Kenya has less than two years to bring on board 30 per cent local shareholding into its mobile money business under rule changes that were published by the ICT ministry in 2020.
Under the new regulations, Airtel was given three years from November 2020 to cede the mobile money stake, and must also sell a similar stake in Airtel Networks Kenya Limited (the voice business) by April 2024.
Airtel Kenya has less than two years to bring on board 30 per cent local shareholding into its mobile money business under rule changes that were published by the ICT ministry in 2020.
Under the new regulations, Airtel was given three years from November 2020 to cede the mobile money stake, and must also sell a similar stake in Airtel Networks Kenya Limited (the voice business) by April 2024.
Prior to these changes, the firm has been enjoying an indefinite exemption that was issued on March 20, 2013 from the ministry from having to comply with the local shareholding rule.
Airtel Africa, the parent company of the Kenya operation, reminded investors of the upcoming ownership requirements in its latest trading update but did not state whether it has sought an extension, exemption or taken steps to bring on board a new local investor.
The amended policy however allows the firm to apply to the ICT minister for an extension of time to comply with the shareholding requirement, or to obtain an exemption.
The company had not responded to Business Daily queries on the matter by the time of going to press.
Meanwhile, the Communications Authority of Kenya (CA), said that it is not aware of any request from Airtel Kenya for an extension of its waiver as of now, adding that applications for such exemptions are usually directed to the ICT Ministry.
Last year, the ministry said the company must first renew its licence that expired in February 2015 before entering talks with the government for a waiver of the local ownership rule.
Airtel has however been locked in a court dispute with the CA over the renewal of its operating licence, with the regulator insisting that the firm must pay the permit fee of Sh2.1 billion to stay in business.
Airtel has in the meantime been operating on a licence acquired along with Essar’s (yuMobile) assets in 2014.
The push to introduce local ownership in Airtel Kenya is mirrored in Uganda, where MTN has had to recently list on the Kampala bourse to meet license terms that required the to do so.
Tanzanian authorities in 2017 forced Vodacom Tanzania to sell shares in an IPO, which was open to Tanzanian nationals only.
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