Activist Tom Gachoka and Prof. Fredrick Ogola have filed a petition in the Milimani High Court challenging the proposed sale of 15 percent of the Government of Kenya’s shares in Safaricom PLC to Vodacom Group, valued at approximately Kshs 204.3 billion.
In their petition, the duo argues that the transaction is “grossly undervalued and appears to have been poorly and selectively negotiated… to the grave detriment of the Kenyan public,” and that it has been conducted without transparency, public participation, or independent valuation.
The petition, lodged at the Constitutional and Human Rights Division of the High Court, names as respondents the Cabinet Secretary for the National Treasury and Economic Planning, the Cabinet Secretary for Information, Communication and the Digital Economy, the Communications Authority of Kenya, the Competition Authority of Kenya, the Attorney General, Safaricom PLC, and Vodacom Group.
According to the petitioners, Safaricom PLC, which provides mobile and fixed voice, data, and internet services as well as mobile money through M-PESA, dominates Kenya’s digital economy.
The government currently holds a 35 percent stake, and the proposed sale would reduce its shareholding to 20 percent, leaving only two board seats under government control.
“The proposed sale is being driven by the Government without a transparent price-discovery mechanism, competitive bidding, disclosure of transaction advisors, independent valuation, or adequate financial, market, and risk analysis, all of which are essential to safeguarding national interests and data sovereignty,” the petitioners state.
The petitioners further argue that the sale price of Kshs. 34 per share is far below the estimated fair value of Kshs. 70–80 per share, potentially exposing the Republic of Kenya to losses of approximately Kshs. 250 billion.
Safaricom, they note, contributes around Kshs 18–20 billion in annual revenue to the government and is a key player in mobile money, e-commerce, and digital lending.
The petition highlights that Vodacom, through its Kenyan subsidiary Vodafone Kenya, already controls 40 percent of Safaricom.
If the sale proceeds, Vodacom would effectively hold a controlling interest of about 55 percent, while government influence would diminish.
The petitioners warn that such concentration threatens Kenya’s strategic control over critical national infrastructure, including mobile money platforms and digital data systems.
Gachoka further contends that the process breaches the Public Procurement and Asset Disposal Act, 2015, and the Public Private Partnerships Act, 2022, as it has been undertaken without meaningful public participation, independent valuation, or risk assessment.
The petitioners claim the transaction violates several constitutional provisions, including Articles 1, 10, 35, 43, 201, 227, and 258, which safeguard public assets, ensure transparency and accountability, and promote sustainable development.
Among the reliefs sought, Gachoka and Ogola are asking the court to compel Safaricom to disclose all bidders and transaction advisors, declare that government shares in Safaricom constitute strategic national infrastructure, and quash any agreement made with Vodacom.
They are also seeking an order requiring a full, transparent public participation process, competitive bidding, and independent verification of the sale price.
“This transaction does not serve the best interests of the Kenyan public and raises serious concerns of impropriety, lack of accountability, and abuse of public trust,” the petitioners say in their filing.
The case is pending directions before Justice Bahati Mwamuye.
