Nairobi — The government is in talks with Jamhuri/Helios to transfer its 60 percent stake at Telkom Kenya to the United Arab Emirates (UAE) firm, the Infrastructure Corporation of Africa LLC (ICA).

This is after the state rescinded its earlier plan to buy the stake by amending the transaction to allow another private investor to takeover.

Subsequently, ICA was picked to control a majority stake at the telco based on the offer submitted, which is subject to regulatory approvals.

"In order to complete the process of onboarding ICA, GoK will work with Jamhuri/Helios to transfer their 60% shareholding directly to ICA, this process will inevitably require rescinding of the transaction documents already signed between GoK and Jamhuri/Helios, among other necessary actions," Treasury Cabinet Secretary Njuguna Ndung'u said.

In the deal, ICA will inject capital to fund Telkom's critical infrastructure, upgrade the company's capabilities, and settle some of the outstanding liabilities.

The National Treasury, on the other hand, will play as a minority shareholder and consume the services.

"Further, GoK as a critical stakeholder will pursue the actualization of regulatory reforms that are necessary to correct the structural imbalance in the telecommunications industry for the benefit of all stakeholders, key of whom is the public as a consumer."

In 2022, the government agreed to buy a 60 percent shareholding in Telkom from Jamhuri/Helios after the former exited the company.

It follows an approval by the Cabinet a few days ago to stop the planned acquisition of Telkom.