Kenya’s Telecom Market Faces Uncertainty as Viettel Abandons Bid for Telkom Kenya

The withdrawal of the Viettel Group from its much-anticipated acquisition of a 70 percent stake in Telkom Kenya, previously held by Orange, has thrown the Kenyan telecom market into a state of uncertainty.

Telkom Kenya, under Orange, was the last bastion for the French telecom entity in East Africa. This followed a concluded sale of Orange’s Ugandan operations to Africell just a week prior.

The strategic decision by Orange Telecom to vacate the East African telecom scene can be traced back to the Kenyan government’s sanction of the sale of India’s yuMobile to Safaricom and Airtel. These local giants are Orange’s formidable competitors in the same region.

In the wake of Viettel’s surprising bow-out, the Kenyan government maintains that the void created by the Vietnam-based telecom titan invites other yet-to-be-tapped operators into the Kenyan market.

However, this assertion is quickly met with skepticism. Observers note visible turbulence in the market as major players take their exit. “The fact that Orange and yuMobile are bailing out from the Kenyan market in less than a year creates a disconcerting picture about both the market conditions and the regulatory environment,” asserted Edith Mwale, a prominent telecom analyst at the well-respected African Center for ICT Development.

As it stands, Safaricom is the leading force in the Kenyan telecom scene, boasting a substantial base of over 21 million subscribers. They significantly outpace Airtel, who hold a modest, second-place standing with just above five million customers. Meanwhile, Telkom Kenya lags behind with only 2.6 million subscribers.

This narrative is further intensified by predictions of more market shakeups as emerging tech trends redefine the telecommunications landscape in Kenya and beyond. It remains to be seen how these developments influence the entry or exit of other operators within the Kenyan market.

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This article was updated in 2025 to reflect modern realities.