THE COURT STOPS SALE OF TELKOM SUBSIDIARY IN KENYA

Mergers, Acquisitions and Financial Results

The intended privatisation of Gilgil Telecommunications Industries has been stopped by the High Court. One of the losing bidders, Muringa HoldingsLtd got the temporary orders stopping the execution of the multi-million contract until its judicial review application is heard.

Muringa Holdings Ltd is alleging unfairness and breach of procurement regulations in the tendering process in which Egyptian Electronic Technology was given the contract. It insists it was in the interest of the applicant and the public that the tender is cancelled.

The orders issued by Lady Justice Roselyne Wendoh of the Constitutional Court on Monday are directed at Telkom Kenya, which owns the facility, Information and Communication Permanent Secretary and the Attorney General. She gave Muringa seven days to file a substantive motion after which dates would be set for a hearing. In it application filed by lawyer Elijah Mwangi Kinyanjui, the tender for joint venture for GTI was advertised by Telkom Kenya Limited.

The Nation