The cabinet has cancelled the government’s purchase of the 60.0% stake in Telkom Kenya from London-based private equity firm Helios.
In a dispatch to the media on Tuesday, the cabinet also revealed that it will be seeking a refund of the Sh6.091 paid to Helios for the purchase.
The cabinet has also given Telkom Kenya the go-ahead to scout for a strategic investor to support the telco’s growth ambitions.
‘’In addressing the governance challenges posed by the nationalization of Telkom Kenya Limited in the run-up to the last general elections, Cabinet rescinded the decision that the government of Kenya shall purchase from Jamhuri/Helios sixty per cent of the ordinary shares of Telkom Kenya.’’ the dispatch read.
‘’By dint of this decision, by Cabinet Jamhuri/Helios will refund to the government the amount paid as consideration for takeover’’
‘’The decision by Cabinet offers Telkom Kenya an opportunity to source and onboard another strategic investor, subject to the receipt of regulatory approval’’ it further read.
The Cabinet adds that the new ‘’interventions will enhance the operational capacity of Telkom Kenya and make it a competitive player in the telecommunications market’’
Helios excited Telkom Kenya in June last year over what it said were failures by the government to honour its commitments.
Earlier in June Information, Communication and the Digital Economy Cabinet Secretary Eliud Owalo revealed the government was also looking for a strategic investor to bail out the telco to reduce the risk of spying of critical government information.
The CS said the government was also looking for a strategic investor to bail out the telco to reduce the risk of spying on critical government information.
“The government is concerned about the security of its communications infrastructure,” Owalo said. “We believe that by owning a majority stake in Telkom Kenya, we can better protect our national security.”
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