Airtel Kenya has signaled a return to profitability.
According to Airtel Africa, its Kenyan Unit has built up the tax credits to use in the future to lower its tax bill.
The company started using the credits in the quarter that ended in June 2022, and by the end of the half-year to September the cumulative amount utilized stood at 42 million dollars.
Airtel Africa says the unit reported a 12.4 percent revenue growth in voice and SMS services in the review period to September.
“Considering Airtel Kenya’s profitability trends, that tax losses have recently been utilised and on the basis of forecast future taxable profits, the group has determined that it is now probable that taxable profits will be available against which the tax losses and temporary differences can be utilised,” said Airtel Africa in the September filings.
“Consequently, the deferred tax asset recognition criteria are met, leading to the recognition of an additional deferred tax asset of $42 million during the six months ended 30 September 2022.”
Airtel Africa continues to remain confident about the future prospects of the Kenya business, going by recent heavy investments in acquiring extra capacity for the unit.
This is after in May 2022, the Network paid the sector regulator Communications Authority of Kenya (CA) an instalment of $5 million as part payment for its operating and spectrum licence running from 2015 to 2025.
In July, Airtel Kenya paid the CA $40 million for a licence on additional fourth-generation (4G) Internet services in the country —60 MHz of additional spectrum in the 2600 MHz band.
A newsmaker, reporter and anchor at Pearl Radio, Ndalilah Sharon is witty and savvy.
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