Former President Uhuru Kenyatta’s plan to buy 60% of Telkom Kenya shares from Jamhuri Holdings Limited (JHL), a business held entirely by Helios Investments Partners, has been overturned by Cabinet.

The choice was made to address the governance issues, according to the report from the Cabinet meeting on Tuesday at State House, which was presided over by President William Ruto.

In the months leading up to the general election in 2022, there was worry regarding the nationalization of Telkom Kenya.

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As a result of this choice, Jamhuri/Helios (Telkom) will reimburse the government for the KSh 6.09 billion it paid as takeover consideration.

Subject to receiving all regulatory clearances, Telkom Kenya will now need to find and bring on board another strategic investor.

Months before the general election, there was a contentious buy-back of Telkom shares, which the administration of President Ruto expressed worry about.

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The Uhuru Kenyatta administration maintained that the critical significance of Telkom, which manages several crucial resources used for government communications, including a national fiber-optic network, made it imperative to acquire Helios.

In 2023, a parliamentary investigation was started to look into the transaction.

The government’s rejection of a potential merger transaction with Airtel Kenya, according to Jamuhuri Holdings, might lead to significant losses.

The present top management of Telkom Kenya, excluding board members, received some compensation from the costs paid for the repurchase, making them direct beneficiaries of the transaction, according to Paul Cunningham, the CFO and Director of Jamhuri Holdings.