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{
    "id": 541694,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/541694/?format=api",
    "text_counter": 512,
    "type": "speech",
    "speaker_name": "Hon. Barua",
    "speaker_title": "",
    "speaker": {
        "id": 1529,
        "legal_name": "Ejidius Njogu Barua",
        "slug": "ejidius-njogu-barua"
    },
    "content": "Thank you, Temporary Deputy Speaker, for this opportunity to contribute to this very important Report. At the outset, I would like to say that as Member of the Committee, I support the Report, the findings and recommendations. First, I would like to regret that this is one of the pioneer privatisation initiatives which has completely failed, and does not serve as a good example for privatising the other parastatals we have in Kenya. In the year 2007 that is, 8 years ago there was an effort by the Kenyan Government recapitalise and restructure Telkom Kenya, with the intention of increasing its value to Kenyans and improve Kenyans’ wellbeing. I would like to say that the failure of this initiative meant that Telkom Kenya was not in a position, and still is not in a position, to pose effective competition to private initiatives in this country. That failure is the reason why communication charges in Kenya are still very high compared to elsewhere on this continent. Although the privatisation initiative was awarded to the highest bidder, what followed at implementation of the process was actually suspect, and I would not be wrong to say that it had a lot of irregularities that need to be investigated. France Telecom of South Africa was awarded the bid at US$390 million. What followed was that the same France Telcom entered into agreements and partnerships with other private enterprises, whose existence even the Committee itself could not authenticate. It means that this process as, it is up to, now is riddled with some ghost companies; the either do not exist, or their owners are not coming out for ulterior motives. The other point I want to put across in support of the Report is that, although France Telcom took 51 per cent of the shares of Telkom Kenya, Government shares kept on being diluted from 49 per cent to 40 per cent and from 40 per cent to 30 per cent. What is interesting is that the first dilution of 9 per cent was at a cost of Kshs33 billion. What is more surprising is that the other dilution of 10 per cent, which is more than 9 per cent, was at a cost of Kshs4.9 billion. So, the people in charge of that process need to explain to this Government how you can sell 9 per cent shares at Kshs33 billion and at the same time sell 10 per cent shares at Kshs4.9 billion. This means there were The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}