How Uhuru ally paid Ksh 415M in 5 months for consultancy in a controversial Telkom buyout

Uhuru ally, John Ngumi paid Ksh 415M in 5 months for consultancy in a controversial Ksh6 Billion Telkom buyout.

Retired President Uhuru Kenyatta’s ally John Ngumi on Wednesday, April 19, defended the Ksh415 million payment made over the course of five months just days before the August 2022 elections, for his role as an advisor in the government’s Ksh6 billion acquisition of Telkom.

Ngumi testified before the Joint Committee on Finance, National Planning, and Communication, Information, and Innovation of the National Assembly, explaining that Jamhuri Holdings Limited rewarded him for his extensive business knowledge. 

He attributed his skills to the revival of companies while contracted to a UK private equity firm, Helios Investment Partners. 

“I was paid because I am the best in business and I had already helped Helios revive a company that was on its deathbed. They valued my advice against taking legal action against the Government of Kenya. It wasn’t me imposing a fee on them,” Ngumi stated.

Explaining how he landed the role, Ngumi detailed that Helios, the company he was already contracted to, finances Jamhuri Holdings Limited.

Ngumi was the transaction’s top beneficiary, per the documentation presented before the committee.

The Ksh6.2 billion payment to Helios Investors through Jamhuri Holdings Ltd without the National Assembly’s authorization in August 2022 is under investigation by the MPs.

Molo Member of Parliament Kuria Kimani, who chairs the Finance Committee, also put to task Karim Anjarwalla of Anjarwalla & Khanna Advocates, who was questioned on his role in Jamhuri Holdings Limited.

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Kimani wondered why Jamhuri Holdings financed a loan totaling Ksh6.8 billion and made payments to different agents to the tune of Ksh6.7 billion and currently has a balance of Ksh135 million. 

At the same time, he pointed out that Anjarwalla’s law firm received Ksh57.1 million in payments as legal fees.

“We were not legal representatives for both Jamhuri Holdings Limited and the Government of Kenya, we were only legal representatives of Jamhuri Holdings Limited and have documents supporting that. The government got independently advised, I did not advise the government in regards to this transaction,” Anjarwalla replied.

Ngumi was perceived as Uhuru’s point man as he chaired boards of powerful parastatals during Kenyatta’s reign. 

These included Kenya Airways, Kenya Ports Authority, Kenya Pipeline Company, and Kenya Railways Corporation.

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