Ruto Govt Spends Ksh6 Billion to Purchase Shares in Foreign Banks- Report
The administration led by President William Ruto has invested just over Ksh6 billion in acquiring stakes in two development banks.
A review of the supplementary budget audit report indicates that Kenya engaged in financial ventures with the Eastern and Southern African Trade and Development Bank, as well as the Africa Export-Import Bank (Afreximbank) from December 2022 to June 2023.
Nancy Gathungu’s office report reveals that, on December 28, 2022, the government utilized Ksh5,013,200,450 to acquire 2,161 shares in Afreximbank.
48 hours later, the Ruto-led government utilized a sum of Ksh752,621,101 to acquire 491 Class A shares from the Eastern and Southern African Trade and Development Bank.
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Furthermore, a sum of Ksh544,133,567 was utilized on June 12, 2023, for the acquisition of 328 Class A shares from the Eastern and Southern African Trade and Development Bank.
It was clarified that the objective behind the decision was to enhance Kenya’s impact within the regional trade banks.
“A review of documents on the purchase of shares revealed that the Government of Kenya bought shares of the banks to increase its influence and relevance in the bank’s activities.
“This was especially on investment decisions, to have the banks channel more investments to Kenya,” read the report in part.
Significantly, the banks play a crucial role in backing development initiatives within the area.
As an example, Afreximbank committed to providing financial backing amounting to Ksh127 billion for Deputy President Ruto’s initiative to build 100 dams.
Telkom Shares Purchase
The auditor also discussed the acquisition of Telkom shares, which was initiated during the final period of former President Uhuru Kenyatta’s administration.
The report states that attempts to finalize the specifics of the agreement proved unsuccessful due to the numerous challenges encountered by her office throughout the investigative process.
“Further, the document review revealed that the Government of Kenya bought back from Jamhuri Holdings Limited, the 60 percent shareholding earlier relinquished in Telkom Kenya Limited.
“Requests to visit the two banks’ headquarters in Burundi and Egypt, respectively, as well as the registered offices of the company that sold off the Telkom Kenya Limited shares in Mauritius and the United Kingdom were either declined or not responded to,” read the report in part.
Ruto Govt Spends Ksh6 Billion to Purchase Shares in Foreign Banks- Report