The Kenyan government's acquisition of a majority stake in Telkom Kenya has sparked controversy and raised questions about the company's ownership. In 2022, the government paid Sh6.091 billion to Jamhuri Holdings Limited, the investment vehicle of Helios Investment Partners, to acquire a 60% stake in the telecommunications company. The deal was intended to give the State full control of Telkom Kenya, but it appears that the transaction was not completed as expected.
The ownership saga has returned to Parliament, with fresh questions over the government's purchase. According to evidence reported from the latest parliamentary inquiry, the government currently holds 37.9% of Telkom Kenya, while Jamhuri Holdings retains 56%. This is dramatically different from the 100% State ownership that was expected after the 2022 buyout. The Solicitor General has confirmed that the government did not acquire full ownership and that authorities did not know the ultimate owners of Jamhuri Holdings, which is registered offshore.
The Sh6 billion payment remains contentious, with issues surrounding how much Kenya paid and whether the State received the ownership it intended to purchase. The 2022 transaction involved not only shares but also shareholder indebtedness owed to Jamhuri. The government was taking over that indebtedness as part of the arrangement. The parliamentary investigation is examining the circumstances behind the ownership position and the use of public funds under Article 223 of the Constitution.
The Auditor-General and parliamentary committees questioned the use of public funds for the acquisition, and the Ethics and Anti-Corruption Commission investigated allegations surrounding the purchase of the shares. Parliament's Finance Committee later recommended disapproval of the expenditure. The controversy surrounding the deal has raised concerns about the management of public funds and the need for transparency in government transactions.
In October 2023, President William Ruto's Cabinet rescinded the decision for the government to purchase the 60% stake from Jamhuri/Helios. Instead, the Treasury announced plans to have the 60% stake transferred directly to another strategic investor, Infrastructure Corporation of Africa (ICA) of the United Arab Emirates, subject to regulatory approvals. This decision created the central question now before Parliament: What happened to the shares after Kenya had already paid for them?
The current parliamentary inquiry is expected to establish the legal and financial status of the transaction, including the ownership of Telkom Kenya and the circumstances surrounding the government payment. The inquiry will also examine the regulatory and parliamentary approvals surrounding the transaction. Until that process is concluded, the safest description is that Kenya paid Sh6.091 billion in 2022 for a 60% stake it intended to acquire, but the subsequent transaction was rescinded.
Telkom Kenya is an integrated technology and telecommunications provider in Kenya that delivers voice, data, network services, and digital financial solutions. The company reaches roughly 90% of the population with its national network coverage, though translating infrastructure into widespread active mobile internet adoption remains an ongoing market challenge. As of mid-2026, Telkom holds a tight subscriber base amidst a highly competitive landscape dominated by Safaricom.
Key points
- The Kenyan government paid Sh6.091 billion for a 60% stake in Telkom Kenya in 2022, but it appears that the transaction was not completed as expected.
- The government currently holds 37.9% of Telkom Kenya, while Jamhuri Holdings retains 56%, according to evidence reported from the latest parliamentary inquiry.
- The parliamentary investigation is examining the circumstances behind the ownership position and the use of public funds under Article 223 of the Constitution.
