COURT HALTS MULTI-BILLION SAFARICOM STAKE SALE!
Wiper leader Kalonzo Musyoka has scored a major legal win after the High Court froze the government’s plan to sell its 15% stake in Safaricom to Vodacom.
The deal, valued at a staggering Ksh 204.3 billion, is now in limbo as the judiciary investigates claims of constitutional violations and threats to national interests.
The Core Arguments
Kalonzo, leading a legal team of over 100 lawyers, argues that the sale isn't just bad business—it’s unconstitutional.
- Constitutional Breach: The petition claims the move violates Article 209, which protects public resources from "irregular disposal."
- Data Sovereignty: Concerns have been raised over handing control of the personal and financial data of over 50 million Kenyans to a foreign-based entity.
- The Price Tag: Critics argue the Ksh 34 per share price significantly undervalues Kenya’s most profitable company.
What the Court Said
Justice Lawrence Mugambi has issued a status quo order, meaning the sale cannot proceed for now. Because of the "weighty constitutional issues" involved—including the concept of intergenerational equity (protecting assets for future Kenyans)—the case has been referred to a three-judge bench for a full hearing.
Why the Government Wants to Sell
The National Treasury is pushing the sale to:
- Fund Infrastructure: Move the proceeds into a National Infrastructure Fund for transport and energy.
- Manage Debt: Help service Kenya’s ballooning Ksh 12.5 trillion public debt.
The Deal at a Glance
- Stake: 15% (Leaving the Govt with only 20%)
- Price: Ksh 204.3 Billion
- The Buyer: Vodacom Group (South Africa)
Hamasta Media Asks: Is the government "selling the family silver" to pay off debts, or is this a necessary strategic move?
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