President William Ruto’s administration is set to start looking for a new investor in the bid to revitalize Telcom Kenya.
The decision came after the Cabinet rescinded the nationalization of Telkom Kenya and directed the seller to refund the money.
“By dint of this decision by Cabinet, Jamhuri/Helios will refund to the Government of Kenya the amount paid as consideration for the takeover,” a dispatch from Cabinet read in part.
The Cabinet indicated the revocation of the Telkom Kenya buyout paved the way for the transaction to be conducted by following due diligence.
“The decision by Cabinet offers Telkom Kenya an opportunity to source and onboard another strategic investor, subject to the receipt of all regulatory approvals,” the dispatch indicated.
“Cabinet’s intervention will enhance the operational capacity of Telkom Kenya and make it a competitive player in the telecommunications market,” the Cabinet resolved.
Controversy on the Deal
The buyout deal was entered four days before the August 9, 2022, presidential where the government bought 60 per cent of the ordinary shares of Telkom Kenya held by UK-based Helios Investors LLP and its Mauritius-based subsidiary, Jamhuri Holdings Limited, at a cost of Ksh6.09 billion.
It was done days before former President Uhuru Kenyatta handed over the instruments of power to the incumbent.
The deal, however, raised controversy after it emerged that the National Treasury overruled the Controller of Budget and bought out Helios Investment’s stake in Telkom Kenya Ltd in a transaction that lacked parliamentary approval.
Controller of Budget Margaret Nyakang’o told Parliament’s Budget and Appropriations Committee (BAC) on February 14 that she refused to authorize the withdrawal of Ksh6,091,140,702 to cater for the exit of Helios Investment in Telkom Kenya Ltd.
By the time of this publication, Helios Investment had not issued a response to Cabinet’s directive.
The firm is however obliged to co-operate, especially after President Ruto’s recent stance on three things (mambo ni matatu) on sugar cartels.
