Kenya’s cabinet is seeking to reverse the government’s purchase of a 60% majority holding in Telkom Kenya obtained from Helios Investment Partners in October 2022.
The Economic Times reports that the move seeks to overturn a deal struck in the final months of the administration of President Uhuru Kenyatta. The outgoing government spent US$50.3m on the holding, arguing that it was essential to retain control of Telkom Kenya as it controls key assets, including a national fibre network used for government communications.
The incumbent government of President William Ruto has opened a parliamentary inquiry into the acquisition, alleging foul play. Helios has thus far not commented on the move.
Between the government’s debt burden, escalating interest rates, and high taxes that are quelling consumer demand, Kenya faces a number of economic challenges. The government has ordered all ministries and state departments to slash 10% from their budgets for the 2023-24 fiscal year.