By Kamadi Amata
Renowned investment banker John Ngumi has stepped down as an independent non-executive director of Kenya Airways, following an ongoing investigation into allegations of profiteering from the controversial sale of Telkom Kenya. The airline confirmed his resignation on Friday. Ngumi’s departure comes just months after he resigned from his position as board chairman and director of Safaricom. The chairman of Kenya Airways’ board of directors, Michael Joseph, announced the appointment of James David Kabereri as an interim replacement for Ngumi until the annual general meeting.
In a statement, Michael Joseph said, “The Board announces the resignation of Mr John Ngumi as an independent non-executive director of the company.” Ngumi’s resignation comes shortly after he sought a court injunction to prevent the Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions (ODPP) from prosecuting him.
Ngumi expressed his belief that the stabilization efforts at Kenya Airways were yielding positive results, which he deemed an appropriate time for others to take over and build on the company’s transformative platform. He maintained his faith in the airline’s strategic and economic importance to Kenya and expressed confidence that it would continue to receive vital support from the government.
Ngumi’s departure from Kenya Airways further deepens the mystery surrounding his involvement with anti-graft agencies. He recently appeared before the National Assembly’s Finance and National Planning and the Communication, Innovation and Information committees to address the Telkom Kenya acquisition, which was valued at Ksh.6.2 billion. Ngumi has faced allegations of providing flawed advice to the Treasury in this transaction.
Ngumi obtained a court order preventing his arrest and prosecution, with the judge citing potential harm to his banking career. While he was directed to sign an anticipatory bail and appear for questioning by the EACC, it remains uncertain whether he complied with the directive.
Investigations into the acquisition of Telkom Kenya continue, as it was revealed that the government paid Ksh.6.2 billion to Helios Investors LLP through Jamhuri Holdings Ltd without the approval of the National Assembly. Ngumi received Ksh.362.1 million ($3.07 million) from JHL for his advisory services in the deal.
The situation surrounding Ngumi and the Telkom Kenya acquisition remains ongoing, and further developments are expected as the investigations progress.
