Merali reduces Zain stake as Kuwait partner seeks buyers

Businessman Naushad Merali has sold a substantial portion of his shares in Zain Kenya, setting up a major challenge for the Communications Commission of Kenya to clarify its position on application of ownership rules for cell phone operators.

Mr Merali’s stealth exit from Zain Kenya also signals a major shift in investor sentiment in the prospects of the turnaround of the business which has struggled over the last five years to grow revenues and profits at a time when the incumbent was gaining market share and as new entrants make inroads into the market.