French Firm Stoa Closes Sh3.5 Billion Deal for Atlas Tower Kenya

The Competition Authority of Kenya has granted unconditional approval for the acquisition of Atlas Tower Kenya by Stoa SAS, a French infrastructure and impact investment firm. The transaction, valued at approximately Sh3.5 billion, or $27 million, sees the French firm taking over the independent tower operator from its previous owners, Kalahari Capital.

Atlas Tower Kenya has been active in the local market since 2019, positioning itself as a key neutral host provider for mobile network operators. The company currently manages a portfolio of more than 450 towers, providing essential passive infrastructure to Safaricom, Airtel, and Telkom Kenya. This latest capital injection is intended to accelerate the construction of new sites while retrofitting existing ones with renewable energy solutions.

The regulatory body noted that the deal is unlikely to harm competition within the telecommunications sector. According to market data from early 2025, Safaricom maintains the largest share of the tower market at nearly 59 percent, while American Tower Corporation (ATC) holds roughly 32 percent. Atlas Tower Kenya currently accounts for a 3.25 percent market share, a figure the new owners expect to grow as they scale operations.

A primary focus of the new investment is the transition toward sustainable energy. Operating costs for tower companies in Africa are heavily influenced by diesel consumption, which can account for 20 to 40 percent of total overheads. Atlas Tower Kenya has already made strides in this area, reporting that 82 percent of its sites were solarized by the end of 2024. The long-term objective remains a 100 percent solar-powered network, reducing reliance on the national grid and backup generators.

Nathan Foster, the founder and CEO of Atlas Tower Kenya, indicated that the partnership provides the necessary resources to maintain the company’s growth trajectory. He noted that the capital will be used to enhance asset growth and improve power generation across the network. The move aligns with a broader industry trend in Kenya, where mobile operators are increasingly divesting their passive infrastructure to focus on core service delivery.

Stoa SAS, which is backed by the Caisse des Dépôts and Agence Française de Développement, plans to use its development expertise to address the digital divide in rural and underserved areas. Beyond the technical infrastructure, the company has maintained a policy of environmental restoration, planting ten trees for every new tower built through a partnership with Nature Kenya.

The acquisition follows a history of significant funding for the firm, including a $25 million debt package from the International Finance Corporation in 2022. As the demand for 5G and high-speed data grows in urban centers like Nairobi and Mombasa, independent tower companies are under pressure to densify networks and provide more reliable uptime through hybrid energy models.

With the approval from the Competition Authority now finalized, the transition is expected to stabilize the firm's balance sheet against currency fluctuations that have previously impacted the sector. The entrance of Stoa SAS as a long-term equity partner signals continued international interest in Kenya’s digital economy and its supporting physical infrastructure.