Anti-corruption body ends investigation into Telkom privatisation

24 Mar 2021

Kenya’s Ethics and Anti-Corruption Commission (EACC) has terminated its investigation into Telkom Kenya after concluding that its privatisation process was above board. Business Daily reports that the EACC concluded that there was no evidence of impropriety or culpability of the public officials involved when the state’s ownership in the telco was reduced back in 2012 and 2013. The investigation was opened following allegations that the National Treasury committed the government to sign a recapitalisation and restructuring agreement for Telkom without making sure that there was adequate budgetary provision to defend its stake in the telco, which led to the government’s ownership dropping to 30%.

The EACC’s investigation was reportedly one of the reasons behind the decision of Telkom and its mobile competitor Airtel Kenya to abandon their planned merger in August last year; the pair cited the ‘lengthy process’ and the ‘challenges experienced in getting all the approvals required to complete the transaction’ as the reasons behind the cancellation of the merger agreement.

Kenya, Telkom Kenya