Omanghana
Airtel Africa has begun winding up Airtel Kenya Telesonic Limited, its wholesale internet and fiber subsidiary, two years after establishing the company in Kenya.
The closure follows an application submitted by the telecommunications group to the Registrar of Companies. The registrar subsequently approved the request and initiated the process of striking the subsidiary off the official company register.
Airtel Kenya Telesonic was created to operate within the wholesale connectivity market, but the business struggled to generate revenue during its short period of operation.
Financial records indicate that the subsidiary recorded no revenue across its operational years. It posted a net loss of 2.9 million Kenyan shillings during its first year, before the loss widened to 16.1 million Kenyan shillings.
The increasing losses and absence of revenue reportedly made the unit financially unsustainable, prompting Airtel Africa to discontinue the dedicated business.
The decision represents a strategic adjustment to the company’s operations in Kenya rather than a complete withdrawal from the East African country.
Airtel Africa will continue providing its core mobile telecommunications and mobile money services through its existing Kenyan operations. The company remains one of the major competitors in Kenya’s telecommunications market.
The closure of the fiber subsidiary allows the group to concentrate its resources on established business areas while reassessing its approach to wholesale internet and infrastructure services.
Once the regulatory process is completed, Airtel Kenya Telesonic will formally cease to exist as a registered company.
Source: Omanghana
