Safaricom is set to maintain its 65 per cent stake in the mobile money market after EACC opened investigations into allegations of fraud into the merger of Telkom and Airtel.

The graft body has refused to okay the deal, arguing that aspects of the transaction were suspected and exposing them to scrutiny. Consequently, a caveat against the finalization of the merger has been issued against Competition Authority and Communications Authority.

The anti graft agency wants to establish the circumstances under which the treasury ceded further ownership of Telkom Kenya to Orange.

EACC is also seeking to find out whether public funds were lost when the cabinet approved a plan in 2012 to convert Treasury’s loans in telkom Kenya into equity as part of a plan to recapitalise and restructure the company.