The Cabinet has decided to cancel the government’s purchase of a 60% stake in Telkom Kenya for slightly more than Ksh.6 billion.
Following a meeting presided over by President William Ruto, the Cabinet stated that the government will now seek a refund of the said amount from Jamhuri Holdings and Helios Investment Limited for the buyout deal.
“In addressing the governance challenges posed by the nationalization of Telkom Kenya Limited in the run-up to last year’s General Election, Cabinet rescinded the decision that the Government of Kenya shall purchase from Jamhuri/Helios sixty per cent (60%) of the ordinary shares of Telkom Kenya,”
“By dint of this decision by Cabinet, Jamhuri/Helios will refund to the Government of Kenya the amount paid as consideration for the takeover.” the communique read.
Former Treasury Cabinet Secretary Ukur Yatani revealed that the government was the majority shareholder in the controversial buyout of Telkom Kenya.
Yatani testified before a Parliamentary committee investigating the buyout that, contrary to claims that the government paid for but did not receive the shares from Helios Limited, all transfer documents are at the National Treasury.
Furthermore, the cabinet has authorized Telkom to seek a new strategic investor.
The payment was approved following a meeting of the National Security Advisory Council, which wanted Telkom to be fully government-owned because it manages critical installations such as the President’s office, State House, the Defense headquarters, the National Intelligence Service, and the IFMIS portal.
Helios left the Kenyan market, citing government frustrations. One of the issues raised by the company was the government’s delay in sanctioning the merger of Airtel Kenya and Telkom Kenya Limited. Helios claimed Telkom Kenya suffered a $200 million (Sh26.1 billion) loss.
