Telkom Kenya and Bharti Airtel's local units plan to merge some operations as a first step as Telkom plans to acquire all of Airtel's Kenyan assets, a source at the industry regulator said on Tuesday.
Telkom Kenya plans to take over all of Airtel Kenya eventually but it has yet to decide on a structure, the source said.
"They are yet to make a formal application (to the regulator) disclosing all the details," the source told Reuters.
Telkom Kenya declined to comment and Airtel Kenya had no immediate comment.