The Cabinet has handed Telkom Kenya an opportunity to source and onboard another strategic investor, to boost firm’s competitiveness in the telecommunications industry.
Cabinet on Tuesday rescinded the decision that the government of Kenya shall purchase from Jamhuri/Helios sixty per cent of the ordinary shares of Telkom Kenya. “Through the decision, Jamhuri/Helios will refund to the government the amount paid as a consideration for the takeover,” reads a cabinet dispatch.
“The intervention will enhance the operational capacity of Telkom Kenya and make it a competitive player in the telecommunications market.”
Jamhuri Holdings notified the government of its intention to exit Telkom in August 2021. Treasury then wrote to Telkom Kenya, notifying of the exit with the government purchase of 71.2 million shares.
Margaret Nyakango, the controller of Budget earlier told the Budget and Appropriations Committee that she refused to sign off the sought Sh6.09 billion for the purchase but then Treasury Cabinet Secretary Ukur Yattani went ahead with the deal.
During the Tuesday meeting, the Cabinet was also appraised on the state of economy. The cabinet considered the progress being made in the implementation of Financial Year 2023/24 Budget. It sanctioned the reduction of the recurrent budget of each ministry and state department by ten per cent.
The proposed budgetary cuts will be affected as part of the supplementary appropriations number 1 of the Financial Year 2023/24 Budget Cycle.
Govt Gains Full Ownership of Telkom Kenya Following Helios Exit – Kenyan Wallstreet