Business

By NICHOLAS WAITATHU

FINANCE minister Amos Kimunya has clarified that the Government consulted Vodafone Kenya Limited before coming up with a decision to sell 25 percent of Safari com shares to the public.

Speaking while inaugurating the Public Procurement Advisory Board at Treasury Building yesterday Kimunya said the Government discussed widely with Vodafone Kenya before embarking on the divestiture process.

He assured the members of the public that the Government shareholding in Safaricom Limited through Telkom Kenya is intact and secure.

He said as per the shareholding agreement the Government cannot interfere with Vodafone Kenya 40 percent shareholding in Safaricom saying doing so will be contrary to the agreement.

The Government mission, Kimunya said is to ensure 25 percent of the 60 percent stake in Safaricom held by Telkom Kenya is divested to the public as per the outlined rules.

"We will ensure 25 percent of the 60 percent we own in Safaricom Limited through Telkom Kenya is wisely sold to the public. Those trying to stop the Initial Public Offering (!PO) are not well-informed on the divesture dynamics," he said.

He defended the Government idea to partner with Vodafone Kenya, saying the joint venture was purely based on commercial principles and the Government now wants to release part of the undertaking to the public as part of the privatisation process. Kimunya added that Government paid the required amount of Shs 2.2 billion (US$33 million) while Vodafone Kenya paid Shs 1.4 billion (US$22 million) to the Communications Commission of Kenya (CCK) as license fees.

He told off a group of opposition MPs who are calling for the cancellation of the Safaricom IPO dismissing the move as inconsequential and in bad faith. Safaricom .returned a profit before tax of Shs 17 billion during the period ended March31, 2007 becoming the most profitable company in East and Central Africa region.

On operationalisation of the Privatisation Act 2005, Kimunya stated that the process started long time ago even before the parliament ordered him to do so.

He clarified that his ministry has been working out modalities to ensure there are sound structures to guide operationalisation of the same.

"We are waiting for the Delloite and Touch auditing company to give us names of those interested in the advertised post of chief executive officer, so that the privatisation commission can be established," he said.