GAZETTE NOTICE NO. 11825

PURSUANT to the provisions of section 46 (6) of the Competition Act, 2010, it is notified for general information that in exercise of the powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorized the proposed transaction as set out herein on condition that: (i) The merged entity shall not sell or transfer the following Operating and Frequency Spectrum Licences within the remaining duration of the said licenses; 13th December, 2019 THE KENYA GAZETTE Operating Licences (a) Network Facility Provider-Tier 1-Licence No. TL/NFP/T1/00001 (b) Applications Service Provider-Licence No. TL/ASP/00001 (c) Content Service Provider-Licence No. TL/CSP/00001 (d) International Systems and Services Provider-Licence No. TL/ULF/IGS/00001 (e) Submarine Cable Landing-Licence No. TL/SCR/00003 Frequency Spectrum Licences (a) 800MHZ- Licence No. FL/0008 (b) 900MHZ-Licence No. FL/0009 (c) 1800MHZ-Licence No. FL/0009 (d) 2100MHZ-Licence No. FL/001/002 (ii) Upon expiry of the term of the merged entities' operating license, the spectrum in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the Government of Kenya (GoK); (iii) The merged entity, or part of it, is restricted from entering into any form of sale agreement within the next five years. However, in the event of any indication of a failing firm within the period, the Communications Authority shall conduct a forensic audit at the cost of the merged entity; (iv) The merged entity shall honor all the existing contractual terms with GoK entities; (v) The merged entity shall only access the 4,204 kms of fibre managed by Telkom on behalf of GOK at the current market rates and no preferential rates shall be accorded to them unless as provided for in existing contracts; (vi) The merged entity shall not enjoy any preferential access to use capacity on the 4,204 kms of fibre managed by Telkom on behalf of GoK; (vii) The merged entity shall ensure that at least three hundred and forty nine (349) of the six hundred and seventy four (674) employees of the target are retained as follows— (a) 120 employees by the merged entity for a period of two (2) years from the date of the implementation of the merger; (b) 114 employees by Telkom Kenya Limited for a period of two (2) years from the date of the implementation of the merger; and (c) 115 employees to be absorbed by the network partners of the merged entity; and (viii) The merged entity to annually furnish the Authority with a detailed report on compliance with the above conditions. Dated the 5th November, 2019. WANG’OMBE KARIUKI, MR/0431899 Director-General.