Nairobi, Kenya – A petition has been filed in court seeking to stop the Government of Kenya from selling 15 percent of its shares in Safaricom PLC to a private foreign entity. The petitioners argue that the move poses a threat to national security, data sovereignty, and public interest.
Petitioners’ Concerns
The urgent application was filed by Tony Gachoka and Prof. Fredrick Ogolla, who contend that the proposed sale would reduce the government’s stake from 35 percent to 20 percent, leaving it with only two board seats and weakening its influence over the telecommunications giant.
“Safaricom 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.
Allegations of Undervaluation
The petition claims the sale, valued at approximately Ksh. 204.3 billion or Ksh. 34 per share, is grossly undervalued compared to an estimated intrinsic value of Ksh. 70–80 per share. Petitioners warn this could expose the Kenyan public to losses of more than Ksh. 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 added.
Legal and Governance Issues
The affidavit further argues that the government’s attempt to dispose of the shares under the Public Private Partnerships Act, 2022 bypasses requirements set out in 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. Disposal of public assets must follow strict statutory processes and be subjected to public scrutiny,” the affidavit reads.
Strategic Risks
The petitioners warn that if Vodacom Group acquires the shares, it would hold 55 percent control over Kenya’s telecommunications sector. This, they argue, would undermine government control over mobile money systems, competition policy, and sensitive national data infrastructure.
Additional concerns include:
- Lack of safeguards for data localization and protection of financial information for over 30 million Kenyans.
- Absence of a national security impact assessment.
- Proposals to channel proceeds into an infrastructure fund managed solely by the Cabinet Secretary, raising fears of concentration of financial power, evasion of parliamentary oversight, and collapse of accountability.
Reliefs Sought
The petitioners have asked the court to issue conservatory orders restraining the government and other respondents from transferring, selling, or disposing of the shares pending full determination of the case. They 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.
Conclusion
The case underscores the growing debate over the privatization of strategic assets in Kenya. As Safaricom remains the backbone of the country’s mobile money and digital economy, the court’s decision will be closely watched for its implications on national security, economic sovereignty, and public accountability.
