President William Ruto's cabinet has rescinded the decision to purchase 60 per cent shares of Telkom Kenya at a cost of Sh6 billion.
A Cabinet sitting held on Tuesday, October 3, resolved to make a U-turn on the deal that was sealed during the era of former President Uhuru Kenyatta, a few days before the August 9, 2022, General Elections.
"In addressing the governance challenges posed by the nationalization of Telkom Kenya Limited in the run-up to last year’s General Election, the Cabinet rescinded the decision that the Government of Kenya shall purchase from Jamhuri/Helios sixty per cent (60%) of the ordinary shares of Telkom Kenya," a resolution of the Cabinet read in part.
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Following the resolution, the Cabinet has resolved to have the amount paid for the takeover of 60 percent of Telkom Kenya shares returned to the government of Kenya.
The Cabinet said Telkom will have an opportunity to bring on board another investor.
"By dint of this decision by Cabinet, Jamhuri/Helios will refund to the government of Kenya the amount paid as consideration for the takeover. 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 resolution further added.
"The Cabinet’s intervention will enhance the operational capacity of Telkom Kenya and make it a competitive player in the telecommunications market."
