According to a report by Kenyan insight, the CEO of Bharti Airtel company Mr. Gopal Vittal has called his Partner in Africa Mr. Raghunath Mandava to weigh up the possibility of closing down its business operations in the East Africa Country. Mr. Gopal has also instructed his partner to weigh up the worth of his Kenyan business according to information availed to Kenya Insights.
This comes after a decision by the Kenyan government to instruct all foreign companies to give up 30% of their capital to Kenyan businesses by 2024.
According to the report, international companies who have an interest to invest in the Kenyan market will be required to part ways with a 30% stake in order to be considered as Kenyan companies.
This will be mandatory before the companies are allowed to obtain business licenses in the country. The Companies have been given up to 3 years to adhere to the new local ownership regulations.
“It is the policy that only companies with at least 30 percent substantive Kenyan ownership, either corporate or individual, will be licensed to provide ICT services." reads the policy in a recent Gazette Notice.
It now remains to be seen whether Airtel will go ahead with the plan to cease its operations in Kenya.
Meanwhile, share with us your thoughts on the matter kindly.
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