John Ngumi Faces Renewed Graft Probe Over Sh6.2bn Telkom Deal

John Ngumi, a prominent investment banker and former Safaricom chairperson, is once again under scrutiny by the Ethics and Anti-Corruption Commission (EACC) over the controversial Sh6.2 billion Telkom Kenya transaction.

The deal involved Jamhuri Holdings, a Mauritius-based private equity firm, selling its Telkom shares to the Kenyan government during the final years of President Uhuru Kenyatta's administration. Ngumi advised Jamhuri Holdings on the sale and earned a fee of $3.07 million.

Legal Challenges and Tax Payments

Despite Ngumi’s efforts to halt the investigation through the High Court’s Constitutional and Human Rights Division, the court transferred the case to the division handling corruption and economic crimes. The EACC is working with the Director of Public Prosecutions to pursue graft charges related to the irregularities in the deal.

Following parliamentary questioning about his role and the hefty advisory fee, Ngumi voluntarily paid Sh111.9 million in taxes—far exceeding the statutory withholding tax of around Sh18 million—hoping to demonstrate good faith.

Career and Controversies

• Ngumi began his career in the 1980s, raising offshore financing for Kenya's coffee sector during the Moi era.
• He rose to prominence by structuring major corporate and government deals, including Safaricom’s first corporate bond and Kenya’s 2014 Eurobond issuance.
• His close ties with Uhuru Kenyatta boosted his profile, leading to his appointment as Safaricom chairperson.
• Known for a flamboyant lifestyle, Ngumi has faced multiple creditor disputes but has avoided bankruptcy.

Despite his reputation as a skilled dealmaker, Ngumi now faces significant legal hurdles as the new administration intensifies scrutiny of transactions linked to the previous government.