In a fresh twist, Kenya has announced that a company based in the United Arab Emirates (UAE) will get majority stakes in Telkom Kenya after UK’s Helios Investment Partners left.

Treasury CS Njuguna Ndung’u says the government picked Infrastructure Corporation of Africa LLC (ICA) to take over Telkom after a competitive process started in January 2023.

Ndung’u revelation on Wednesday comes hours after cabinet reversed a deal struck in July 2022 that saw the government buy out Helios for Sh6.09 billion and demanded a refund.

On August 5, 2022, Treasury is reported to have paid the amount to Jamhuri Holdings Ltd, a subsidiary of Helios based in Mauritius, without seeking the National Assembly’s approval.

President Ruto’s administration now wants Helios to reimburse it the Sh6.09 billion and sell its 60 per cent share to ICA to save the government from the technical parastatal sale route.

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“Government of Kenya (GoK) will work with Jamhuri/Helios to transfer their 60 percent shareholding directly to ICA,” said the Treasury CS, in his statement on Wednesday.

He added, “This process will inevitably require rescinding of the transaction documents already signed between GoK and Jamhuri/Helios, among other necessary actions.”

According to Ndung’u, ICA will pump monies into Telkom Kenya to enable it upgrade its infrastructure, improve its capacity as well as enable it to meet some of its obligations.

Kenya Government, as a minority stakeholder, is also expected to inject finances into the troubled company to aid it to find its footing in the competitive telecommunications sector.

Helios opted to sell off its majority stakes after Kenya government rejected its proposal for a Telkom Kenya-Airtel Kenya joint venture to enable it face market leader Safaricom head-on.

The investor also opposed the government’s takeover of Telkom’s 79-acre prime property along Ngong Road worth more than Sh10 billion to ostensibly build a sports ground.

On Wednesday, the Treasury CS spoke of a competitive process by the Government that commenced in January 2023 even as such an ongoing process has never been revealed before, including in the Cabinet brief revealing the decision to rescind the Helios buyout.