7 July 2009
editorial
Nairobi — Reports that UK telephony giant Vodafone Plc has bought out shareholders of the secretive Safaricom shareholder, Mobitelea, might come as a relief, especially for the buyer.
At the beginning of the decade, Mobitelea indirectly took 10 per cent of Safaricom through a company called Vodafone Kenya, with the balance going to Vodafone of UK. Having earlier disposed of half of its shares, it has finally sold the remaining 5 per cent.
Vodafone will be relieved as Mobitelea, at least in the public eye, has come to represent the worst of the Moi era's sneaky deal-making. Needless to say, that has not left the London Stock Exchange firm looking good.
But what should concern Kenyans more is that Mobitelea has quietly exited -- after cashing in what could be billions of shillings -- before Kenyans could get to the bottom of the matter.
Questions persist: How did the Mobitelea owners acquire their shares? How much did they pay?
Why has Vodafone declined to reveal their names? Did the UK firm act in the public interest? What did Kenyans gain from the transaction involving a parastatal?
Given the fact that the government does not appear interested in resolving the matter, Kenyans should not let the matter die just because Mobitelea has sold its shares.
Vodafone should supply the answers to all these nagging questions if it is to be regarded as a responsible corporate citizen.
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