Court extends orders blocking sale of Safaricom shares worth Ksh204B

The High Court has extended conservatory orders barring the government from selling 15 per cent of its stake in Safaricom, valued at over Ksh204 billion, pending further directions in a high-stakes constitutional petition.

A three-judge bench, Justices Francis Gikonyo, Ouya Tabitha Wanyama and Roselyne Aburili, appointed by Chief Justice Martha Koome, ruled that the interim orders issued earlier will remain in force until April 27, 2026, when the court is set to hear an application seeking to extend the orders until the case is fully determined.

The bench said the decision to maintain the status quo was necessary to preserve the subject matter of the petition, which challenges the proposed sale of the government’s shares by the National Treasury.

The orders were extended following submissions by lawyers representing the petitioners, led by Senior Counsel Stephen Kalonzo Musyoka, who urged the court to protect what they termed a matter of grave public interest.

“We are here to get your directions on the way forward, but of singular importance is the fact that your brother issued conservatory orders for the maintenance of the status quo, effectively halting the sale of 15 per cent shares of government in Safaricom,” Kalonzo told the bench.

“Given the matter is of grave public interest, numerous applications will be put forward. Our proposal is that if there is any other party, we have no objections to the two applications by former Nairobi Governor Mike Sonko and former PS Irungu Nyakera seeking to be enjoined as interested parties in the matter,” SC Kalonzo added.

Kalonzo further applied for additional time for parties to file supplementary affidavits and responses.

“If there are any supplementary affidavits or opposition to be filed, let it be done within seven days,” Kalonzo told the bench.

In his oral application, Kalonzo also sought to enjoin Vodafone Kenya Limited as a respondent in the case.

“One is under Rule 5(2)(d) of the Mutunga Rules of 2013; we seek to join Vodafone as the 8th respondent. We will be proving that Vodafone Kenya Limited is almost fully owned by Vodafone,” Kalonzo submitted.

He also urged the court to allow amendments to the petition.

“Under Rule 18, we pray for leave to amend the petition dated January 26, 2026, to correct a few issues and update a few matters,” he told the bench.

On the extension of the conservatory orders, Kalonzo argued that there was urgency and risk in allowing the sale process to proceed.

“We pray for extension of conservatory orders issued by Justice Lawrence Mugambi on March 23, 2026. This is informed by the fact that Treasury has approved, with effect from April 1, 2026, to sell the subject matter of this petition, that is, 15 per cent shares of Safaricom,” Kalonzo submitted.

“That approval was in express violation of court orders, and the reason why we strongly argue for the extension of conservatory orders is that when the court was on vacation, the Attorney General attempted to move the court to have the conservatory orders lifted. That shows that there is bad faith on the part of some of the respondents,” Kalonzo added.

He warned that lifting the orders would have far-reaching consequences.

“The country is watching. Safaricom happens to be the egg that raises the GDP of the country’s economy. The world has taken note. The name M-Pesa is a Kenyan innovation and has entered the international space,” he said.

“We urge the court to extend the orders until the matter is concluded in a fair and just manner to the Kenyan people. If these orders are lifted, it will be a disappointment to Kenyans who are affected, including the mama mboga and over a million Safaricom employees,” Kalonzo argued.

He further raised concerns over national security and electoral integrity.

“As we approach the election year, Safaricom serves as a major platform for the delivery of data of election results. It will compromise national sovereignty and security because it is a national security asset,” Kalonzo told the bench.

Lawyers representing intended interested parties, including former Nairobi Governor Mike Mbuvi Sonko and former Principal Secretary Irungu Nyakera, indicated they did not oppose the extension.

“The Safaricom company is important to Kenya. We do not want to see the control of this strategic asset compromised,” counsel Lempaa submitted on behalf of Nyakera.

However, the application was strongly opposed by the state, including the Office of the Attorney General, the National Treasury, and Parliament.

Through Senior Counsel John Ohaga, the respondents argued that the extension of the orders was unjustified.

The government maintained that due process had been followed, including securing parliamentary approval for the transaction.

The bench directed that all parties file and exchange responses within seven days and set April 27, 2026, as the date to hear the application seeking to extend the interim orders.

“The court will hear the application seeking to extend the interim orders on April 27, 2026,” the judges ruled.

Additionally, the court granted the petitioners leave to amend their petition within the same seven-day period.

More Articles

---