Competition Authority of Kenya Approves Sh3.5 Billion Acquisition of Atlas Kenya

The Competition Authority of Kenya (CAK)  has granted unconditional approval for the acquisition of Atlas Kenya  by French infrastructure investor Stoa S.A.S. The deal, valued at $27 million (Sh3.5 billion), marks a significant transaction in Kenya’s telecommunications infrastructure sector.

Atlas Kenya, currently owned by Kalahari Capital LLC, has been operational in Kenya since 2019. The company provides connectivity infrastructure, including more than 450 telecom towers, to local mobile network operators (MNOs) such as Safaricom, Airtel, and Telkom, as well as internet service providers (ISPs).

Stoa S.A.S., the acquiring company, is an impact investment firm based in France, specializing in infrastructure and energy projects in emerging and developing markets. The transaction is being executed through Stoa Africa Limited, which will also acquire a 31.03 percent minority shareholding with veto rights in Atlas Kenya. This arrangement is intended to provide additional capital to expand Atlas Kenya’s operations locally.

The CAK approved the acquisition after determining that it is “unlikely to lead to a substantial prevention or lessening of competition in the market for provision of telecommunication infrastructure in Kenya, nor elicit negative public interest concerns,” according to the competition watchdog.

As of January 2025, Safaricom leads Kenya’s telecom tower market with a 58.94 percent share, followed by ATC Kenya with 32.64 percent. Atlas Kenya holds a 3.25 percent share, while other providers account for 5.17 percent of the market. The country has a total of 12,555 telecom towers.

The deal comes amid a growing trend of mobile operators selling off infrastructure to third-party tower firms. Infrastructure sharing allows tower companies to own and manage passive infrastructure, which they lease to MNOs and ISPs. This approach reduces operators’ capital expenditure and enables them to focus on service delivery while allowing rapid deployment of new services and network upgrades.

Atlas Kenya CEO Randl Clendennen emphasized the strategic importance of the acquisition, stating: “We will scale our tower portfolio, strengthen the sustainability of our operations, improve power generation, and reach more communities with critical wireless infrastructure service.”

The company has a history of investment in network expansion. In 2021, Atlas Kenya invested $48.9 million (Sh6.3 billion) in 4G tower installation across the country, supported by the International Finance Corporation. Following the Stoa acquisition, the firm plans to further enhance its infrastructure portfolio, including improvements in solar power and battery storage systems, ensuring reliable voice, data, and broadband connectivity across Kenya.