The $100 million joint bid was first launched in February this year, and final approval could be given next month.
Essar Kenya, which operates under the Yu brand, has approximately 2.6 million subscribers, but has struggled to compete with larger players in the market.
"The whole project is at an advanced stage," said Francis Wangusi, director general of the regulator, the Communications Authority of Kenya (CAK),
The CAK has reportedly approved the deal, but it needs to wait until the end of the month for other parties involved to raise objections before final approval can be given.
Essar is exiting Kenya after six years, after failing to recoup its investment in the market.
