The High Court has dealt a blow to petitioners seeking to block the government’s sale of a stake in Safaricom, declining to issue interim orders halting the transaction.

Justice Lawrence Mugambi, presiding at the Milimani Law Courts, ruled that the judicial process must not be rushed, emphasizing that all parties—including the National Treasury and the strategic investors—deserve a fair hearing before any determination is made. This decision allows the multi-billion shilling transaction, which has sparked intense public debate over national sovereignty and data security, to proceed procedurally for now, pending a full hearing.

A Question of National Interest

The petition, filed by activists Tony Gachoka and Professor Fredrick Ogola, argues that the sale of the 15 percent government stake to a foreign entity—reportedly Vodacom Group—compromises Kenya’s national security and economic independence. They contend that the transaction is:

• Undervalued: The petitioners claim the shares are being sold at roughly Sh34 each, while the intrinsic market value stands between Sh70 and Sh80.
• Opaque: The suit alleges a lack of public participation and competitive bidding in the disposal of such a critical national asset.
• Strategically Risky: Reducing the state’s shareholding from 35 percent to 20 percent would leave the government with minority control in a company that anchors the nation's financial and communication infrastructure.

The Judge’s Stance

Justice Mugambi’s refusal to grant conservatory orders signals a cautious judicial approach to complex economic policies. "I will not issue orders until I have heard the case because they have appeared in court. The best I can do is give them enough time," the judge stated, prioritizing a structured legal battle over immediate intervention. The case is now set for a full hearing where the government must defend the rationale and pricing of the deal.

"We are selling the family silver for a song," remarked one of the petitioners outside the court, vowing to fight on. For the government, however, the ruling is a temporary reprieve as it seeks to raise capital and rationalize its portfolio in state-linked enterprises.