Ruto Goes After Tycoons Who Pocketed Ksh 6B Days Before Uhuru Left Office

President William Ruto on Tuesday, October 3, led the cabinet in revoking the government’s purchase of 60% shares of Telkom Kenya from the United Kingdom (UK) based Helios Investment fund.

In the decision made during a sitting at State House, cabinet members rescinded the now controversial nationalization of Telkom in the run up to the 2022 elections.

According to a cabinet dispatch sent from the sitting, the decision was aimed at addressing the challenges posed by nationalization of the telecom company. 

Consequently, Helios Investment will be required to refund the Ksh6 billion it received from the sale in 2022. 

“Jamhuri/Helios will refund to the government of Kenya the amount paid as consideration for takeover,” the the dispatch read in part.

In addition, the President Ruto-led cabinet agreed to look for another investor interested in buying the company.

According to the dispatch, the move is aimed at enhancing the capacity of Telkom and make it competitive in the telecommunications sector.

Telkom takeover saga

The decision on Tuesday came months after members of parliament launched a probe into the dealings that saw the government purchase the 60% stake from Helios.

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Helios, which operated in Kenya as Jamhuri Holdings Ltd, acquired a 60% stake at Telkom in 2016 to become the majority stakeholder.

However, the company’s operations in Kenya’s market encountered setbacks, prompting the multinational investor to contemplate offloading its stake.

Among the setbacks cited include the collapse of a planned joint venture with a major telecommunications firm in Kenya in what former Treasury Cabinet Secretary Ukur Yatani noted resulted from a decision by the National Security Council. 

In addition, the company accused the state of illegally acquiring a prime plot under the ownership of Telkom valued at Ksh10 billion without seeking consent. 

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Consequently, Helios declared its intentions to exit Telkom. What followed was the initiation of the purchase process with the government paying the Ksh6 billion for the total amount owed to Telkom both in shares and shareholder loans.

Parliament probe

However, the haste in which the then administration completed the transaction raised questions, prompting an investigation into the dealings.

Officials including former CS Yatani appeared before the Finance Committee in parliament in the inquiry process. 

In his submissions, CS Yatani explained that the purchase was expedited due to security reasons as advised by the National Security Council.