Court declines to halt sale of government shares in Safaricom

Instead, Justice Lawrence Mugambi directed that the matter be mentioned for further directions on the 23rd of this month.

Petitioners Tony Gachoka and Prof. Fredrick Ogolla, through senior counsel Kalonzo Musyoka, told the judge to issue the orders, saying that if the sale happens, they will suffer prejudice.

In the court papers, the petitioners had argued that the sale threatens national security, data sovereignty, and public interest.

They also claimed the shares, valued at about Ksh. 204.3 billion or Ksh. 34 per share, were undervalued compared to an estimated intrinsic value of Ksh. 70–80 per share, potentially causing losses of over Ksh. 250 billion.

Gachoka stated that Safaricom, which dominates Kenya’s mobile telecommunications, mobile money, e-commerce, and digital financial services, is a strategic national asset that should not be transferred to a foreign entity.

The petition also criticized the process as rushed, opaque, and procedurally irregular, alleging that the Government bypassed key legal requirements under the Public Procurement and Asset Disposal Act, 2015, and the Privatization Act, 2025.

The government plans to offload a 15% stake in Safaricom to Vodacom Group Limited, valued at Ksh. 244.5 billion.

In the planned sale, the government will receive an upfront payment of approximately Ksh.40.1 billion for the right to receive Ksh. 55.7 billion in future Safaricom dividends that would have accrued to the government on its remaining stake.