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There are strong rumours in the business cycles in Nairobi that Deputy President William Ruto is planning to acquire the struggling former telecommunication giant Telkom Kenya.

According to multiple sources with deep connections inside the Jubilee administration, Ruto is keen in using a UK based investment firm, Helios Investment, to acquire the telco, break it off into two units and then sell it at a profit. The move is a result of France Telecom’s Orange brand determination to sell the struggling Kenyan unit and exit the market completely.

According to the information available online, Helios Investment was established in 2004 by Tope Lawani and Babatunde Soyoye. It has grown to be one of the largest investment firms focusing on Africa and is among the few independent pan-African private equity investment firms which managed by Africans.

Just up to May 2015, Orange Kenya was in talks with Airtel Kenya for possible acquisition but the Bharti Airtel owned unit withdrew from the deal citing the liabilities in the Orange Kenya books. Maybe the impending buyout of France Telecom from Telkom Kenya necessitated the recent news released by Helios that they sold their 12% stake in Equity Bank to a Norwegian consortium.

 

We are putting our ears out for this news and we will update. Email [email protected] with any leads to this and others stories.