Airtel Africa has announced that its Kenya subsidiary, Airtel Kenya Networks Limited (‘Airtel Kenya’), has agreed to settlements with the Communications Authority of Kenya (CA) regarding its operating and spectrum licenses.
According to the announcement Airtel Kenya has received approval for the replacement of its temporary license with a ten-year frequency license for 2×10 MHz of spectrum in the 2100 MHz band.
As per the agreement, Airtel Kenya will pay a total of $20-million in four installments over the next three years in respect of settlements regarding the 2015 – 2025 operating and spectrum license. These payments will see the Kenyan telecom settle its dues to the CA for its previous spectrum and operating licenses in the country.
A further $10-million has been agreed to be paid by Airtel Kenya to the Communications Authority for a new 10-year license in the country from 2022 onwards until the telecom will have to renew again in 2032.
Airtel Kenya is one of our largest markets by revenue, and from FY’18 to FY’21 grew revenues by 20.8% CAGR. This $30m investment reflects our continued confidence in the tremendous opportunity inherent in the Kenya market.
In January, Airtel Africa announced that it would be joining the Financial Times Stock Exchange.
The telecom group floated on the London Stock Exchange in June 2019 and has since demonstrated significant growth in its customer base, revenues, profits, margins, and cash generation, as well as strengthening its balance sheet through reduced leverage.
“I am immensely proud that Airtel Africa will be joining the FTSE 100 only two and a half years after we listed on the London Stock Exchange,” said Airtel Africa CEO Segun Ogunsanya.
“This achievement has been on the back of all the hard work and success achieved by everyone at Airtel Africa. We look forward to growing the Company further as we continue to sustainably bridge the digital divide, expand financial inclusion and meet the evolving needs of our customers.’’
