Ruto Overturns Uhuru’s Govt Move, Shaking Telkom industry

President William Ruto’s administration recently convened a crucial cabinet meeting, marking a significant turning point from the policies of the previous government led by ex-President Uhuru Kenyatta.

During Uhuru’s tenure, the government had initiated a controversial move to acquire a 60% stake in Telecom Kenya, a decision that had raised eyebrows, especially considering its timing, just days before the August 9 General Elections.

In a momentous decision, Ruto’s cabinet has chosen to overturn this acquisition, effectively reversing the government’s involvement in Telecom Kenya.

This move, hailed by some and criticized by others, signifies a shift in policy direction.

Furthermore, the cabinet has directed Jamhuri/Hellos, the entity involved in the takeover, to reimburse the Kenyan government for the funds previously paid as consideration for the acquisition.

This directive emphasizes the government’s commitment to ensuring accountability and transparency in financial matters.

In a statement issued after the cabinet meeting, it was stated, “The decision by the Cabinet offers Telecom Kenya an opportunity to seek and engage another strategic investor, pending the receipt of all required regulatory approvals.

This intervention by the cabinet is expected to strengthen Telecom Kenya’s operational capabilities, positioning it as a formidable player in the fiercely competitive telecommunications industry.”

This decision by President Ruto’s government represents a pivotal moment in the country’s telecom industry, with potential implications for competition, innovation, and the future of Telecom Kenya.

The government’s role in the sector is evolving, and stakeholders will closely monitor the developments that follow this decision.