NAIROBI, Kenya — A court petition has been filed seeking to stop the Kenyan government from selling a 15 per cent stake in Safaricom PLC to a private foreign investor, citing national security risks, data sovereignty concerns, and alleged violations of public asset disposal laws.
The petition, filed by political analyst Tony Gachoka and academic Prof. Fredrick Ogolla, challenges a proposed transaction that would reduce the State’s shareholding in the telecommunications giant from 35 per cent to 20 per cent, leaving the government with only two board seats.
In court documents, the petitioners argue that Safaricom is a strategic national asset whose partial disposal to a foreign entity could undermine Kenya’s control over critical digital and financial infrastructure.
“Safaricom dominates more than half of Kenya’s mobile telecommunications connections, mobile money, e-commerce, and digital financial services,” Gachoka states in his affidavit. “It is a strategic national asset that cannot be carelessly transferred to a foreign entity.”
Undervaluation Claims
The petition further claims that the proposed sale is grossly undervalued, placing the price at about Sh204.3 billion, or Sh34 per share, against an estimated intrinsic value of between Sh70 and Sh80 per share.
According to the petitioners, the pricing could expose Kenyan taxpayers to losses exceeding Sh250 billion, raising questions about whether the transaction serves the public interest.
“This transaction has been rushed, opaque, and non-competitive,” Gachoka argues. “There has been no meaningful public participation, no independent valuation, and no comprehensive risk assessment.”
Legal and Governance Concerns
The petition also challenges the legal framework being used to facilitate the sale, accusing the government of attempting to rely on the Public Private Partnerships Act, 2022, while bypassing 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 court filing states, insisting that the disposal of public assets must follow strict statutory procedures and public scrutiny.
Control and Data Risks
The petition warns that if Vodacom Group were to acquire the shares, it would command 55 per cent control of the sector, leaving the Kenyan government with diminished influence over mobile money systems, competition policy, and sensitive national data infrastructure.
It further raises alarm over the absence of safeguards for data localisation and the protection of financial information belonging to more than 30 million Kenyans, as well as the lack of a national security impact assessment.
Use of Proceeds Questioned
The petitioners also criticise proposals to channel proceeds from the sale into an infrastructure fund managed solely by the Cabinet Secretary, warning this could lead to a concentration of financial power, reduced parliamentary oversight, and weakened accountability mechanisms.
Orders Sought
The High Court has been asked to issue conservatory orders restraining the government and other respondents from selling, transferring, or otherwise disposing of the Safaricom shares pending the full determination of the case.
The petitioners are also seeking full disclosure of valuation reports, approvals, transaction advisers involved, and all agreements linked to the proposed sale.
“This is not just about a financial transaction,” Gachoka and Prof. Ogolla argue. “It is about protecting a strategic national asset and ensuring the Kenyan public is not short-changed.”
