PS Nominee Isaboke Under Fire Over MultiChoice Share Deal

The Principal Secretary nominee for Broadcasting and Telecommunications came under scrutiny regarding the acquisition of Sh5.2 million worth of shares in GOTV Kenya, a subsidiary of MultiChoice, and whether this will pose a conflict of interest if his nomination is approved.

Isaboke, who was recently nominated by President William Ruto for the PS position, was asked during his vetting whether his previous business dealings with MultiChoice, particularly the purchase of shares in GOTV, would lead to a conflict of interest in his new role overseeing the telecommunications and broadcast sectors.

A memorandum had been submitted before the committee of communication, information and innovation chaired by Dagoretti South MP John Kiarie to block his approval over integral issues and conflict of interest following the acquisition of the shares.

“Upon my nomination as PS, I stepped down as the Director of GOTV Kenya as required by the law,” he said.

He explained that he had no involvement in the company since his nomination, ensuring that there would be no overlap between his previous role and his potential new responsibilities in President Ruto’s administration.

He also defended the legitimacy of his acquisition of the shares, noting that it followed a long negotiation process, especially considering that, between 2012 and 2021, MultiChoice had to secure waivers to comply with regulations that required foreign entities to have a minimum of 20 percent shareholding.

“There was nothing irregular about acquiring these shares. It was above board for a business that had sought shareholding for so long,” Isaboke said.

Isaboke further detailed the history behind his involvement with GOTV, noting that when the company was fully owned by MultiChoice, negotiations with Kenya Broadcasting Corporation (KBC) were ongoing for KBC to take up the shares as their preferred partner in the country.

“At the beginning of 2021 they were told there won’t be any more waivers because they have exhausted negotiations time frame. As a businessman an opportunity arose and we has mutual negotiations to take up the shares and actually comply with the requirement and henceforth take up the shares,” the PS nominee stated.

He explained that, following the end of the waiver period in 2021 after KBC failed to requisition the shares, an opportunity arose, and after rigorous talks, he signed an agreement to acquire the Sh5.7 Million shares.

“We looked at the nominal set up of the group, which was Sh17 million, and I paid for my setup which was Sh5.2 million. There was nothing irregular about acquiring these shares it was above board for a business that had sort for shareholding for so long,” he asserted.

At the same time, he defended his capacity for the role by highlighting his earlier contributions to the country’s digital migration, which he called his biggest undertaking in the telecommunications sector.

“In 2015, when I was working at MultiChoice, we supported the government in the successful digital migration,” Isaboke stated.

 “We provided Kenyans with affordable decoders, making Kenya one of the most digitalized countries in the world, and I am proud of that,” he added.

The Broadcasting PS nominee has served as the Chairman and Non-Executive Director of GOtv Kenya Ltd, a subsidiary of MultiChoice Africa Group. Additionally, he has held the position of Group Executive and Head of Regulatory Affairs at MultiChoice Group, overseeing Sub-Saharan Africa (48 countries) from Dubai.

Isaboke was appointed to his current role in 2018 when MultiChoice Africa made two high-profile executive appointments aimed at strengthening the group’s business strategies to deliver the best content on DStv and GOtv while ensuring an exceptional customer experience. Prior to this appointment, he served as the Managing Director and Regional Director for East Africa at MultiChoice Africa Group companies from 2008 to 2018.