The government has approved the acquisition of a 60% stake in Telkom Kenya by a United Arab Emirates-based firm, Treasury CS Njuguna Ndung’u has said.
This comes after Cabinet resolved to abandon Treasury’s initial plan to purchase a 60% stake in Telkom Kenya Limited from Jamhuri Holdings Limited (Jamhuri/Helios).
According to CS Ndung’u, the United Arab Emirates’ Infrastructure Corporation of Africa LLC (ICA) was the most preferred new majority stakeholder based on the bid they made.
This he said was after a thorough evaluation process that started in January 2023.
The CS noted that the firm offered a capital injection to fund essential infrastructure improvements and overall upgrades for Telkom.
Read: Government Revokes Ownership Of Telkom Kenya In Bid To Bolster Competitiveness
Further, ICA offered to settle the company’s outstanding liabilities.
Upon receiving regulatory permissions, the government will go through with appointing the Infrastructure Corporation of Africa LLC (ICA) as the new majority shareholder in Telkom.
GoK will work with Jamhuri/Helios to transfer their 60% shareholding to ICA in order to speed up the transition process and guarantee a smooth transfer of the majority shareholding.
On Tuesday, the Cabinet demanded a Sh6 billion refund from Jamhuri Holdings which acquired Telkom last year, days before the general elections.
“The decision by Cabinet offers Telkom Kenya an opportunity to source and onboard another strategic investor, subject to the receipt of all regulatory approvals,” the Cabinet said.
This intervention by the Cabinet is anticipated to strengthen Telkom Kenya‘s operational capabilities and position it as a competitive player within the telecommunications market.
This move signals a pivotal change in the ownership structure of Telkom Kenya, aiming to provide the telco with the necessary resources and flexibility to navigate the challenging landscape of the telecommunications industry in Kenya.
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