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Treasury CS Prof Njuguna Ndung'u has announced that the government has approved the acquisition of 60% shareholding of Telkom Kenya by a United Arab Emirates firm.
This follows Cabinet's decision to reverse Treasury's initial plan to acquire a 60% shareholding in Telkom Kenya Limited from Jamhuri Holdings Limited (Jamhuri/Helios).
CS Ndung'u said that following a rigorous evaluation process that commenced in January 2023, the Infrastructure Corporation of Africa LLC (ICA) from the United Arab Emirates emerged as the preferred new majority shareholder for Telkom, based on the offer they presented.
The offer put forward by ICA includes a capital injection to fund essential infrastructure improvements and overall upgrades for Telkom.
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Additionally, ICA's proposal encompasses the settlement of outstanding liabilities of the company.
The government will proceed to onboard the Infrastructure Corporation of Africa LLC (ICA) as the new majority shareholder in Telkom, contingent upon regulatory approvals.
To facilitate the transition process and ensure a seamless transfer of majority shareholding, GoK will collaborate with Jamhuri/Helios to directly transfer their 60% shareholding to ICA.
his process will necessitate the rescinding of transaction documents already signed between GoK and Jamhuri/Helios, among other essential actions.
The government's strategic decision aims to fortify Telkom's position in the telecommunications market, drive growth, and ultimately enhance services for the benefit of the public and the industry as a whole.
In alignment with this transition, GoK, as a minority shareholder and a significant consumer of Telkom's services, will fulfill its part of the obligations.
The National Treasury, representing the GoK, will work towards ensuring a shared vision for Telkom's growth and development.
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Key elements of this shared vision encompass the enhancement of Telkom's infrastructure and services, settling outstanding financial obligations, and pursuing necessary regulatory reforms.
These reforms are geared towards rectifying the structural imbalances within the telecommunications industry, ultimately benefitting all stakeholders, particularly the consumers.