Telcos’ merger only option, say analysts

Customers at a Telkom Shop at Village Market. [Wilberforce Okwiri/Standard]

Telkom Kenya and Airtel Kenya may have no option but to merge their operations to remain viable in the country’s telecommunications industry, experts say.

Analysts at US Citibank say smaller telecommunication players have run out of room to grow market share through price wars and will need a fresh capital injection from shareholders to sustain growth.