MPs to grill Kinyua, Yatani on Ksh 6B acquisition of Telkom Kenya stake
The buyout deal between the National treasury and Telkom Kenya has come back to haunt former senior government officials.
The former Head of Public Service Joseph Kinyua and Treasury ex-Cabinet Secretary Ukur Yatani have been summoned to appear before the National Assembly Committees on Finance and ICT next week to shed more light on the deal which was valued at Ksh 6.09 billion.
The committee has also raised concerns with the shareholding transfer process saying it is yet to be effected six months after the deal was sealed.
Last year, the National Treasury entered into a private agreement with UK-based equity fund Helios to buy the company’s 60pc stake in Telkom Kenya, reverting the Telco’s ownership to the Government of Kenya.
The deal was criticized by Parliament for the way it was handled. In October 2022, Treasury wired Ksh 6.09 billion to Helios despite objections from a section of lawmakers.
MPs say taxpayers may have lost over Ksh 200 billion in the transfer of ownership of Telkom Kenya since 2007 when the company was sold to France Telkom.
National Assembly Committees on Finance and ICT says the latest deal to return the third largest telco in the country to state ownership contains an indemnifying clause, making it hard to trail the Ksh 6.09 billion contract.
The committee also says the contract contains billions of shillings in unclear commitment clause which exposes taxpayers to other liabilities.
Legislators also claim the shareholding of the telco is yet to change despite transaction being completed.
The top former government officials are expected to appear before the Finance committee next week to lift the lid on the behind-the-scenes deal that brokered the transaction.