Kibati said Telkom decided to pull out of the plan due to the confidence it got from its new direction.
The merger between the pair would have seen them come up with a telco that would have had the financial muscle to fight market leader Safaricom.
Airtel was also counting on the deal to help it pull its Kenyan operations out of loss-making territory.
The planned merger between mobile firms Telkom Kenya and Airtel Networks Kenya has collapsed, providing relief to hundreds of employees who were on the firing line had the marriage been consummated.
Telkom Chief Executive Mugo Kibati said after carefully reviewing the available options, the firm had now opted to adopt an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction with Airtel Networks Kenya Limited.
