Treasury spends Sh6 billion to fully acquire Telkom Kenya

The transaction, which puts the value of Telkom Kenya at Sh10 billion, was completed while Parliament was adjourned.

Telkom CEO Mugo Kibati during a past interview

The government has acquired a 60% stake in Telkom Kenya from Helio Investment Partners for Sh6.09 billion.

According to the documents in Parliament, this means that the government now owns 100% of the telco.

The transaction, which puts the value of Telkom Kenya at Sh10 billion, was completed while Parliament was adjourned.

Documents in Parliament have revealed that the National Treasury evoked Article 223 of the Constitution to spend money without the approval of Parliament.

The law allows the National Treasury to spend money without approval if the house is not sitting during the time contemplated or adjourns before the permission has been sought.

Already, the Treasury has invoked Article 223 of the Constitution that allows them to spend money without the approval of Parliament. They have approved the withdrawal of Sh45.67 billion out of which Sh23 billion has been paid out.

This is coming just two months into the new financial year. They now want Parliament to regularise the expenditure including salaries which is not an unforeseen expenditure,” said Martin Masinde, the acting director of the Parliamentary Budget Office (PBO).

Treasury evoked the law to purchase the shares after Helios notified the government of its intention to divest from Telkom.

We bought the shares for Sh6 billion after Helios threatened to quit.

We bought the shares because the government was afraid Helios was going to sell to an investor that did share the same vision with us in the turnaround of Telkom Kenya,” a Treasury official who requested anonymity told Business Daily.

According to the source, Helios was dissatisfied after the proposed merger between Telkom and Airtel fell through.

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