Airtel Kenya given three more years to find increased local shareholding

The Kenyan government has given Airtel a further three years to comply with local shareholder limits.

The mobile network is required to have at least 20 per cent of its shares owned by local residents, but only five per cent of its shares are owned by Kenyans at the moment. The rest is owned by the Indian company.

The rules relating to foreign shareholder limits have been relaxed in recent years where a company can show that it is genuinely struggling to find a local shareholder.

Airtel has been trying to find a buyer for its surplus 15 per cent stake since it acquired the company in 2010, but as it is still a loss making subsidiary, investors have been unwilling to participate.

Earlier this year it was suggested that Airtel may list its shares on the local stock market in order to comply with the shareholder regulations. However, the stock market requires a company to have posted three years’ worth of profits before they can seek a listing.