The High Court is today expected to issue critical directions on a petition seeking to halt the government’s proposed sale of its 15 per cent stake in Safaricom PLC to Vodacom Group. The deal, valued at over Sh200 billion, has sparked a storm of litigation, with petitioners claiming the state is walking into a lopsided transaction that could cost taxpayers billions in undervalued assets.

At the center of the dispute is a petition filed by Tony Gachoka and Fredrick Ogola, who argue that the transaction lacks transparency and violates public interest safeguards. The petitioners have named the Cabinet Secretaries for the National Treasury and Information, Communications and the Digital Economy as respondents, alongside the Communications Authority of Kenya, the Competition Authority of Kenya, and the Attorney General. They contend that the deal, as currently structured, is a frantic fire sale rather than a strategic disposal of a crown jewel.

The Valuation Controversy

According to court filings, the National Treasury intends to offload the government’s shares at Sh34 per share. The petitioners describe this figure as “grossly undervalued,” citing independent estimates that place the share’s intrinsic value between Sh70 and Sh80. “This pricing could result in significant value loss to the public,” the petition reads in part. The disparity suggests that the taxpayer could be losing nearly half the potential value of the asset, raising questions about who stands to benefit from the discounted rate.

The petition further raises concerns over the alleged absence of competitive bidding. The petitioners argue there has been no indication of multiple bidders, no clarity on valuation methodologies, and no disclosure of the transaction advisers involved. They contend that the proposed sale may contravene the Public Procurement and Asset Disposal Act, 2015, and the Privatisation Act, 2025, which demand openness and parliamentary oversight for such high-stakes disposals.

• Conservatory Orders Sought: The petitioners want the court to restrain the State from executing the deal pending a full hearing.
• Disclosure Demands: They are compelling the government to release all valuation reports and the identities of the transaction advisers.

Government's Defense

The state has previously defended the transaction as part of a broader strategy to raise capital and deepen strategic partnerships. Officials argue that optimising the state’s portfolio in commercial entities is necessary to plug fiscal deficits. However, the lack of public participation and the speed of the transaction have fueled skepticism. As the court issues its directions today, the country watches to see if the judiciary will put the brakes on what could be one of the most controversial privatizations in Kenya’s history.