Dubai firm set to own major stake in Telkom Kenya

The National Treasury has announced that a Gulf firm is poised to become the majority shareholder in Telkom Kenya company.

This is Just one day after the government cancelled its purchase of a 60% stake in Telkom Kenya valued at slightly over Ksh6 billion,

The buyer in question is the UAE’s Infrastructure Corporation of Africa LLC (ICA), which will absorb the government stake.

Telkom Kenya Plaza. Dubai firm is set to own a bigger stake in Telkom Kenya after Photo: Telkom Kenya Plaza/ Telkom Kenya

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The statement shared

The Treasury has shared its intention to work with Helios/ Jamhuri to ensure the transfer of their stake to ICA.

According to the Treasury’s statement, “The Government of Kenya made a decision to amend the sale so as to have another private investor acquire the 60% shareholding from Jamhuri/Helios.”

This decision follows a fair process that started in January 2023 to identify a new investor.

This ultimately recommended ICA of the United Arab Emirates as the new majority shareholder in Telkom.

ICA’s investment will involve adding capital to the struggling Telco with the aim of repairing and improving its operations.

Additionally, the Dubai-based company specializes in digital infrastructure projects in Africa.

Nonetheless, ICA will also assist in settling some of Telkom’s outstanding debts.

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New Telkom owners

The government, in its role as a minority shareholder, has stated its commitment to meeting its obligations.

Furthermore, to prevent similar mobile companies from facing financial challenges, the Treasury has pledged to reform the telecommunications sector to promote inclusivity.

The government aims to address structural imbalances in the telecommunications industry through regulatory reforms.

These reforms are set to benefit all stakeholders, especially the public as consumers.

Previously, on October 3, the government reversed its plan to nationalize Telkom Kenya.

Moreover, it directed the seller, Helios, to refund the money previously paid for the takeover.

The purchasing deal, initiated in August 2022, had been marred by controversy.

Allegations sprouted that it occurred without the government’s approval thus making it illegal.

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