Essar Telecommunications Kenya Ltd has announced it has sold its yuMobile network to two local telecom firms at a cost of US$120mn
Under the deal, Safaricom Limited, the largest telecoms company in Kenya, will take over yuMobile network, IT and office infrastructure, it said.
On its part Airtel Limited, the second largest telecoms firm, will acquire the yuMobile subscribers, it revealed.
Approval for the deal has already been given by the Communication Authority of Kenya (CAK) – clearing the way for Essar’s exit from the Kenyan market, said Essar Telecommunications Kenya.
Up to 90 per cent of yuMobile employees will be absorbed by Safari and Airtel, according to the company.
“We believe the transaction will allow consolidation of the Kenyan telecom market with fewer operators. This will enhance service delivery and greater product offerings,” said Firdhose Coovadia, a board member of Essar Capital.
yuMobile landed into the Kenyan competitive mobile service market in 2008 through the partnership of Essar and local Investors.
The company, however, has been making losses since and has been seeking to exit the market, it said.
Competition in the local telecoms market is expected to rise with the licensing of new, well financed players such as Equity Bank, Kenya Airways, Tangaza Pesa and Zioncell to roll out services soon.
Mwangi Mumero
