Ruto reverses Telkom sale deal

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The Kenyan government has reversed the purchase of 60% stake in Telkom Kenya done by the Kenyatta government.

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Africa Headlines

• Ruto reverses Telkom sale deal made under Kenyatta – Kenya government yesterday reversed the decision to buy a 60% stake in Telkom Kenya from Helios, a UK based infrastructure company. The Cabinet reached the decision yesterday and has requested Helios to refund it the Sh6 billion it used in one of the deals agreed on in the twilight of President Kenyatta’s government. Before this announcement, Telkom Kenya was 100% owned by the government of Kenya after it paid Helios US $50.4 million for its 60% stake in October 2022. Before then, the government of Kenya and Helios owned Telkom Kenya in a 40% / 60% split. Helios acquired its stake in 2015 in a deal with France Telecom and the government of Kenya. However, it is not clear yet how the exchange rate differences will be handled as the Kenya Shillings has lost about 20% to the USD since the deal was agreed in October 2022.

• Nigeria’s bank and telco’s dispute over N120 billion (US $120 million) – The lingering debt issue between Nigeria’s lenders and telecoms over an outstanding N120 billion (approx. US $120 million) debt has surfaced again. The telecoms company has threatened to cut off the USSD services to banks and their customers if the matter is not resolved quickly. There appeared a breakthrough last month when it was announced that the banks have agreed to settle the debts as a recognition of the service to them and not directly to the end users. For regulators of both industries, the ramifications of a cut in USSD services will not only affect financial inclusion drive but also expose bank users to fraud because it will mean an end to real time change in their account for those without email addresses.

• Trading across exchanges across Africa receives a boost – Afrinvest, one of Nigeria’s leading stockbroking houses is partnering with SecondSTAX to provide opportunities for stockbrokers in Nigeria to invest across Africa exchanges. In the initial phase, they will have the opportunity to invest in the Nairobi and Ghana exchanges. This comes as exchanges in Africa are facing the twin problems of rising numbers of African firms listing in European and America exchanges and the global integration of exchanges that are squeezing Africa ones.

• Naira Marley in Police Custody over Mohbad’s death – As expected at the earliest opportunity, the Nigerian Police has detained and is questioning Azeez Fashola (Naira Marley) in connection with the death of Mohbad – Ilerioluwa Oladimeji Aloba. Mohbad died September 12 and since then his body has been exhumed and autopsy carried out while several people are being questioned. It is not clear what will happen after now. So far, the Police have both Naira Marley and Sam Larry (real name Balogun Eletu in their custody).

Global Headlines

• US Speaker removed from office for first time in history – History in politics continues to be set in the US. In the last year, it was the first time a US president would face criminal charges. Yesterday, another history was made when the US speaker Kevin McCarthy was removed as Speaker of the US House of Representatives. It was always tough for the speaker since he was elected Speaker on a deal with eight republicans to right of his policies and with a narrow Republican margin in the House. A temporary Speaker has been announced and it is expected that the House will elect a new Speaker next week. Notwithstanding, it is unlikely that the new Speaker will enjoy the complete confidence of moderate republicans, the eight that are on the “policy right of republicans”, and the Democrats in the House.

• India and Canada relations worsen – The relations between India and Canada continue to get worse as India has requested Canada to withdraw two third of its diplomates in New Dehli. It follows the assassination and death of Hardeep Singh Nijjar, a popular Sikh based in Canada in June this year. Justin Trudeau, Canadian Prime Minister have publicly accused Indian secret agents as the murderers. The India government had designated the Sikh as a terrorist in 2020. While the two countries have been cautious in the way the matter is handled, the diplomatic ramification is escalating tensions between them. Trade treaty talks have been suspended while other forms of meeting and negotiations have stalled.

• Google clamping down on Spams – Google, the search engine and email giant has announced new measures to clamp down on Spam emails. Spam emails account for about 50% of emails. The measure include explicit description of emails for those sharing bulk emails.