Telkom wants Sh10bn bailout
21 March 2012, 10:02
Nairobi - According to Daily Nation reports, Telkom Kenya, which made a record loss of KES. 18.2 billion in 2011 has sunk into a fantastical debt trap and is seeking a KES. 10 billion bailout from the taxpayers.
The country spent more than KES 90 billion of taxpayers’ money to prepare the company for sale to French Telecom in 2007, that resulted in a loss of 16,100 jobs in five years.
In what is turning out to be one of the messiest privatisation transactions in recent times, the government surrendered its crucial fibre optic network as a KES10 billion sweetener in the deal and now the firm has a week to repay KES 5.8 billion for a bank loan.
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