The Kenyan government regained full control over Telkom Kenya after forking out KES6.09 billion (US$50.3m) for the 60% majority stake held by British investment firm Helios Investment Partners, reported Ecofin Agency.
Sources speaking to Business Daily, said the equity firm has lost interest due to the failure to merge Telkom with Airtel, a move to create a more competitive entity against market leader Safaricom.
Sources also said the government had priority to acquire the shares after the investment firm revealed its plans to quit the operator. The government wanted to keep the majority stake from being bought by an investor that did not align with the government’s plans going forward for Telkom Kenya.
Telkom Kenya is rooted in third place with around 5.2 million connections, up from 3.3 million in 2016, reported Ecofin Agency.
The merger between Telkom and Airtel collapsed in 2020 with both parties pointing the finger at regulatory delays.