Kenyan govt taken to task over Telkom deal

Kenyan legislators last week criticised government’s decision to offload its shares in Safaricom and Telkom Kenya.
IDG News said by selling its shares to foreigners in the telephony sector, the government is compromising the country’s security. The news Agency spoke to Boni Khalwale, Member of Parliament for Ikolomani in the Kakamega District who was critical of the move.
“This government is involved in mindless privatization,” said Khalwale, who is also chairman of the Parliamentary Accounts Committee.
France Telecom bought a 51 percent stake in Telkom Kenya in December
However, the government’s decision to offload its shares in Safaricom and in Telkom Kenya to local and foreign investors is in line with the law, said Simeon Lesirma, assistant minister for internal security.
The sale of Telkom Kenya to France Telecom was done with the understanding that the investor would offload 11 percent of its shareholding through an Initial Public Offering during the planned Phase II of the Telkom restructuring, said Lesirma. In the planned phase two of the IPO, the government will offload a further 19 percent of its shareholding to the public and 5 percent to Telkom Kenya employees, added Lesirma.

By ITnewsAfrica.com Reporter