Safaricom insists Telkom Kenya and Airtel must pay a debt of 1.2 billion shillings before the looming merger is concluded.
Safaricom Chair Nicholas Ng’ang’a says the telcom operator is not opposed to the planned business consolidation between the two players once the debt is paid.
Ng’ang’a told investors today that Safaricom posted a 14.4% rise in net profit for the first half of the year to September 30th.
Safaricom says Telkom Kenya owes it 907 million while Airtel has a 391 million shillings debt for interconnection, co-location and fiber services.
Safaricom has already written to the Communications Authority of Kenya seeking its intervention in ensuring that all the outstanding debts owed to the Telcom giant are cleared.
Safaricom chair Nicholas Ng’ang’a has also raised an issue with the planned merger saying there is a need to rebalance the frequencies allocation as well as equal treatment of operators specifically in relation to licensing and operations requirements.
Telkom Kenya and Airtel Kenya plan to consolidate part of their business in a move seen as a bold attempt to wrestle the lucrative mobile money and data services from the strong grips of Safaricom.
Ng’ang’a has also announced that acting Chief Michael Joseph will continue to head the company until the end of March 2020, when the new chief will report for duty.
Joseph announced that double-digit growth in Mpesa and fixed data services boosted its half-year profit to 35.7 billion shillings.
Joseph further revealed that MPesa has been on a steady growth with a 12.4% growth in customer numbers and 11.4% growth in usage.
Revenue growth for M-PESA was reported at 6.5 billion mobile data customers grew by 14.8%.