Nairobi - The government has leased land belonging to the Postal Corporation of Kenya to Bharti Airtel, to set up the headquarters of its operations in Africa In what might trigger discontent from telecoms industry operators.
Prime Minister Raila Odinga said on Monday evening that the government had approved the request by Bharti Airtel to acquire land for their headquarters.
Positive consideration
"The government has given positive consideration to this request and has already identified land that previously belonged to the Postal Corporation of Kenya," Mr Odinga said without specifying the location of the land. The PM was speaking at a ceremony to launch the Airtel brand in Kenya, which was being done simultaneously in 15 other African countries.
Zain Kenya is now Airtel Kenya and its mobile money transfer service--Zap has also been rebranded to Airtel Money. Mr Odinga said arrangements are under way to officially grant the request and official communication will be granted in due course.
"The plan for Airtel to establish their international headquarters here in Nairobi as a sign of its permanence in Kenya goes to signify the faith that the company, as one of the major investors, have in Kenya." This follows Bharti Airtel's acquisition of Zain Africa operations for Sh856 billion ($10.7 billion) earlier in the year.
President Mwai Kibaki had directed the Ministry of Information and Communications to help Bharti Airtel acquire a suitable piece of land following a request by the Indian telecommunications firm's top executives in August this year after they met the Head of State at State House, Nairobi.
The firm will also set up a call centre which will initially have a capacity of 250 seats that will immediately employ 1,000 staff.