The Kenyan government’s buyback of Telkom Kenya shares in 2022 has been one of the biggest scandals to hit Kenya in recent times. Mauritius, or rather its offshore, is directly involved in this affair.
In articles published by the Kenyan press over the past week, it is explained how the Kenyan treasury withdrew 6.09 billion Kenyan shillings, equivalent to Rs 2.04 billion at the current exchange rate, from the government’s main accounts to send to Jamhuri Holdings Ltd, a subsidiary of Helios, to purchase shares.
Helios had acquired 70% of France Telecom’s shares in Telkom Kenya between 2007 and 2013. The deal was completed in November 2015. Shortly after the deal was finalized, Helios negotiated with the Kenyan government to repurchase their newly acquired shares.
The transaction was carried out in several phases. In October 2022, just three days before the general elections, the Kenyan government bought back 60% of Helios’ remaining shares to become the sole shareholder of the telecommunications company.
It is this particular transaction that is suspected of not adhering to good governance procedures. Allegations of corruption also surround the money transfer. According to the Kenyan press, Rs 2.04 billion could be traced back to Mauritius, but then it becomes murky.
What has been established is that the money was sent by Jamhuri Holdings Ltd, located in Mauritius and which received funds from the Kenyan treasury, to the island of Jersey, a tax haven that is a British Crown dependency, before being sent to the Cayman Islands in the Caribbean, and finally ending up in Luxembourg.
The accounts and their owners, as well as the beneficiaries of this transaction, remain unknown so far, despite the establishment of a parliamentary committee in Kenya to investigate the matter.
Source: Defi Media
