Kenya has sold the majority stake in Telkom Kenya to the United Arab Emirates firm, Infrastructure Corporation of Africa LLC (ICA).
In a late Wednesday statement, the country's National Treasury chief Njuguna Ndung'u said the UAE firm will take over the 60 per cent shareholding initially held by private equity firm Helios.
ICA will take over 60 per cent of shares in Telkom Kenya from London-based private equity firm Helios after a competitive process,'' Ndung'u said
On Tuesday, the cabinet led by President William Ruto rescinded a deal between a previous administration and Helios for the nationalisation of Telkom, citing "governance challenges" in that transaction.
"The offer by ICA includes capital injection to fund Telkom's critical infrastructure and the overall upgrade of the company's capabilities, and also settle some of the outstanding liabilities of the company," the exchequer said.
The news of Kenya reselling the large stake in Telkom is coming just a year after the previous government paid Sh6.09 billion to acquire a 60 per cent stake in Telkom Kenya from a UK-based private equity fund, just four days before last year’s general election.
The National Treasury withdrew Sh6.09 billion on August 5, 2022, and paid Jamhuri Holdings Limited, a Mauritius-based subsidiary of Helios in a transaction that lacked parliamentary approval.
On February 14, 2023, Controller of Budget Margaret Nyakangó told legislators the National Treasury overruled her in the transaction.
The CoB must approve the withdrawal of cash from the government’s main accounts and has powers to block access to funds suspected of breaching the law.
