An Airtel shop. The company might exit the country after it complained of stiff regulations that have hampered its development. [Photo/Aptantech]
Bharti Airtel, which has stakes in Airtel Kenya is set to exit the local scene, after years of trying to break into the market without much success.
Reports indicate that the company will cede at least 20 percent of its stake in Airtel Kenya to local investors, citing strict regulations that have made it almost impossible to operate.
According to Bharti Chairman Sunil Mittal, who spoke last week said the company will exit Kenya, Rwanda, and Tanzania.
However, the Communications Authority of Kenya (CA) has said the company had not informed them of plans to leave the local market.
“Airtel has not shared with us any intention to exit the market but if they want to exit there are several processes spelled out in the regulations that they can follow,” CA Director-General Francis Wangusi said on Monday as quoted by the Standard.
“We do not have any restrictions as long as all the laid down provisions are followed, in the first place, if they are selling to foreign investors they will need to ensure at least 20 percent of the shares remain locally,” he added.
The company faces a case in court which might compound its problems if it goes against the company.
In the case, the company is seeking to stop the government from the collection a sh2 billion spectrum fee.
It will be heard on Monday.