Petition filed to block sale of government shares in Safaricom

The petitioners, Tony Gachoka and Prof.Fredrick Ogolla, in an urgent application, argue that the proposed sale would reduce the Government’s stake from 35% to 20%, weakening its control over the company and leaving it with only two board seats.

 “The 6th Respondent-Safaicom dominates more than half of Kenya’s mobile telecommunications connections, mobile money, e-commerce, and digital financial services. It is a strategic national asset that cannot be carelessly transferred to a foreign entity,” Gachoka stated in his affidavit.

The petition claims that the sale, valued at approximately Ksh. 204.3 billion or Ksh. 34 per share, is grossly undervalued compared to the estimated intrinsic value of Kshs. 70–80 per share, potentially exposing the Kenyan public to losses of over Kshs. 250 billion.

“This transaction has been rushed, opaque, and non-competitive. There has been no meaningful public participation, no independent valuation, and no risk assessment. It is procedurally dubious and injurious to the people of Kenya,” Gachoka said.

The affidavit further contends that the Government’s attempt to dispose of these shares under the Public Private Partnerships Act, 2022, bypasses the requirements of the Public Procurement and Asset Disposal Act, 2015, and the Privatization Act, 2025.

 “The Public Private Partnerships Act cannot override constitutional principles of transparency, accountability, and good governance. The law is clear: disposal of public assets must follow strict statutory processes and be subjected to public scrutiny,” the affidavit reads.

Gachoka also warns that the sale threatens Kenya’s strategic leverage over critical infrastructure.

 “If the 7th Respondent-Vodacom Group acquires the shares, it will hold 55% control over the sector. The Government will be left with only 20%, undermining control over mobile money systems, competition policy, and sensitive national data infrastructure,” they argue.

The petition raises additional concerns, noting that the transaction contains no safeguards for data localization, protection of the financial information of over 30 million Kenyans, or national security impact assessments.

It also criticizes proposals to channel proceeds into an infrastructure fund managed solely by the Cabinet Secretary, warning of “concentration of financial power, evasion of parliamentary oversight, and collapse of accountability.”

The court has been asked to issue conservatory orders restraining the Government and other respondents from transferring, selling, or disposing of the shares pending full determination of the case. The petitioners also seek full disclosure of valuation reports, approvals, advisors involved, and all related agreements.

“This is not just about a financial transaction; it is about protecting a strategic national asset and ensuring the Kenyan public is not short-changed,” Gachoka and Prof. Ogolla emphasized.