10 October 2023
The Kenyan government has cancelled the acquisition of a 60% stake in Telkom Kenya from Helios Investment Partners for 6.09 billion shillings, and is asking the British company to repay the money.
President William Ruto reported that that the transaction had not obtained parliamentary approval. Margaret Nyakang'o, budget controller, told the Budget and Appropriations Committee (BAC) that she refused to disburse the funds requested for the purchase, but was overtaken by Ukur Yatani, director of Treasure.
In 2015 that Helios Investment Partners entered the capital of Telkom Kenya by purchasing the majority stake that Orange had acquired in 2007 as part of the privatization of the operator.
The then government found it necessary to acquire Helios' stake in Telkom Kenya as it feared that the company would sell them to an investor who did not share its vision for the turnaround of the company which is facing difficulties. financial and operational difficulties.
Telkom has a declared debt of 7.2 billion shillings. Additionally, American Tower Company (ATC), one of the company's creditors, shut down some of its telecom sites, causing network outages.
“The decision by the Council of Ministers provides Telkom Kenya with the opportunity to find and onboard another strategic investor, subject to obtaining all regulatory approvals. The Cabinet intervention will strengthen the operational capacity of Telkom Kenya and make it a competitive player in the telecommunications market,” said the statement.
