Why is the Government of Kenya going through a Standard Investment Bank to exercise its Rights?
Stockbrokers have protested over the award of a Sh70 million deal to buy Kenya Airways (KQ) rights shares on behalf of the Treasury to a single investment bank, arguing that the contract should have been tendered through competitive bidding.
KQ will pay KES 70mn to SIB. GoK owns 23% of KQ. In essence, the cost to GoK is 23% of KES 70mn = KES 16,100,000 for SIB to stamp a piece of paper? Of course, as a Director on the Board, GoK should NOT have used any stockbroker.
It seems nothing has changed in the 'new' Kenya.
*** I wonder what the status is of the application by KLM & IFC. If its KQ's staff that worked on these deals (as indicated by the executives at KQ) then something is stinky fishy if these applications gone through stockbrokers.
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