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Telkom Buyout Cancelled, Firm Ordered To Refund Ksh 6 Billion Immediately

BY Juma · October 4, 2023 11:10 am

The Kenya Kwanza Government, through a Cabinet Dispatch chaired by President William Ruto, has rescinded the controversial nationalization of Telkom Kenya and directed the seller to refund the money to the national government with immediate effect.

“By dint of this decision by Cabinet, Jamhuri/Helios will refund to the Government of Kenya the amount paid as consideration for the takeover,” a dispatch from State House said, in a move that is likely to kick off one of the historic legal battles.

The Telkom Kenya buyout deal was entered four days before the August 9, 2022, elections where the government bought 60 percent of the ordinary shares of Telkom Kenya held by UK-based Helios Investors LLP and its Mauritius-based subsidiary, Jamhuri Holdings Limited.

The government coughed out 6.09 billion shillings in what has been described as one of the most controversial deals ever.

The deal also raised controversy after it emerged that the National Treasury overruled the Controller of Budget and bought out Helios Investment’s stake in Telkom Kenya Ltd in a transaction that lacked parliamentary approval.

Controller of Budget Margaret Nyakang’o told Parliament’s Budget and Appropriations Committee (BAC) that she refused to authorize the withdrawal of Sh6,091,140,702 to cater for the exit of Helios Investment in Telkom Kenya Ltd.

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The Cabinet in its resolution said the revocation of the Telkom Kenya buyout now paves the way for the transaction to be conducted by following due diligence. “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 dispatch said.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com

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