A petition has been filed in court seeking to halt the Government of Kenya’s proposed sale of 15 per cent of its shares in Safaricom PLC to a private foreign entity, with the move being challenged as a threat to national security, data sovereignty and the public interest.
The petitioners, Tony Gachoka and Prof. Fredrick Ogolla, in an urgent application, argue that the transaction would reduce the State’s shareholding in the telecommunications giant from 35 per cent to 20 per cent, significantly weakening government control and cutting its board representation to just two seats.
In an affidavit filed before the court, Gachoka said Safaricom is a strategic national asset whose ownership should not be transferred without rigorous safeguards and public scrutiny.
He noted that the company dominates Kenya’s mobile telecommunications market, mobile money services, e-commerce and digital financial platforms.
“The sixth respondent, Safaricom, controls more than half of Kenya’s mobile connections and digital financial services. It is a strategic national asset that cannot be carelessly transferred to a foreign entity,” Gachoka stated.
The petition further challenges the valuation of the proposed sale, estimated at about Sh204.3 billion or Sh34 per share.
The petitioners argue that the shares are grossly undervalued, citing an estimated intrinsic value of between Sh70 and Sh80 per share, which they say could expose Kenyans to potential losses exceeding Sh250 billion.
According to the court filings, the transaction is described as rushed, opaque and non-competitive, with no meaningful public participation, independent valuation or comprehensive risk assessment having been undertaken.
“This transaction has been hurried, 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 petition also questions the legal framework under which the government intends to dispose of the shares, arguing that reliance on the Public Private Partnerships Act, 2022, unlawfully circumvents the Public Procurement and Asset Disposal Act, 2015, as well as the Privatisation 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 states.
The petitioners further warn that if Vodacom Group, listed as the seventh respondent, acquires the shares, it would gain a controlling 55 per cent stake in the sector, leaving the government with just 20 per cent and eroding state influence over mobile money systems, competition policy and sensitive national data infrastructure.
Additional concerns raised include the absence of safeguards on data localisation, protection of financial information belonging to more than 30 million Kenyans, and the lack of a national security impact assessment.
The petition also criticises proposals to channel proceeds from the sale into an infrastructure fund managed solely by the Cabinet Secretary, warning that such an arrangement could lead to concentration of financial power, reduced parliamentary oversight and weakened accountability.
The court has been asked to issue conservatory orders restraining the government and other respondents from transferring, selling or otherwise disposing of the shares pending the full hearing and determination of the case.
The petitioners are also seeking full disclosure of valuation reports, approvals, advisers involved and all agreements related to the proposed transaction.
“This is not merely a financial transaction; it is about safeguarding a strategic national asset and ensuring that the Kenyan public is not short-changed,” Gachoka and Prof. Ogolla said.
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