The new entity will likely pose a greater challenge to Kenya's market leader, Safaricom.
Bharti Airtel and Telkom Kenya are reportedly merging their operations, creating a new company that will be called Airtel Telkom.
In a statement , the India-based Bharti Airtel said its Airtel Kenya subsidiary had signed an agreement with Telkom Kenya to merge their respective mobile, enterprise and carrier services businesses to create a new joint entity, Airtel Telkom.
No financial details were disclosed. The deal is also subject to regulatory approval.
The merger is reportedly several years in the making.