The involvement of the abominably corrupt and incompetent Jubilee regime in recruitment of Safaricom CEO is a big red flag. People talk of how KCB’s CEO is also a Kenyan and has done a great job.
They forget that Oigara was appointed in 2012 before Jubilee took over. Same for Bob Collymore in 2010. These were independent board decisions and the then government of the day never got involved in any way.
The results are there for all to see. Bob Collymore has almost tripled Safaricom revenues which now stand at KShs 240 billion. Safaricom net profit has risen five times. Oigara has almost trippled KCB’s asset value from Sh297.5 billion in 2012 to current Sh714.3 billion.
It is only through a competitive and independent recruitment that a 37-year-old could be appointed CEO of the region’s largest bank.
The fact that Jubilee wants to get involved in such recruitment spells doom for Safaricom. This should not be entertained at all.
The government should refrain from commenting on the issue and restrict its role to voting during the Board meeting when such a resolution needs to be executed. CMA should restrain ICT Cabinet Secretary from meddling in the affairs of the NSE listed firm.
Meanwhile the government will receive KShs 26 billion as its share of Safaricom dividends for the year ended 31st March 2019. It will also receive KShs 1.8 Billion as a share of KCB dividend.
In 2012 companies such as Kenya Power, Uchumi Supermarkets, Mumias Sugar, National Bank of Kenya amongst other government-linked firms were doing well and paying dividends.