The High Court has halted the Safaricom stake sale after directing that the status quo be maintained in a case challenging the government’s plan to dispose of a 15 per cent shareholding, pending further proceedings.
The directive was issued on April 16 in Nairobi, where a three-judge bench said it would hear an application for conservatory orders within 10 days before delivering a substantive ruling on the matter.
Court Sets Timeline for Safaricom Stake Sale Case
Justice Francis Gikonyo, delivering directions on behalf of the bench, said the court would prioritise the application and maintain earlier orders issued on March 23.
“We have taken the view to hear the application for conservatory orders within 10 days, consider arguments, and thereafter render a ruling. In the meantime, the status quo orders issued on March 23 are hereby extended,” Gikonyo ruled.
As a result, the Safaricom stake sale remains paused while the court considers whether to issue formal conservatory orders.
Legal Arguments Intensify Over Safaricom Stake Sale
During the proceedings, respondents argued that no active conservatory orders exist. They said earlier directions by Justice Lawrence Mugambi only required maintaining the status quo and had since lapsed.
Furthermore, they told the court that the petition remains incomplete. According to their submissions, petitioners were instructed to amend their case, meaning the court lacks a fully developed matter for substantive relief.
They also rejected claims of broad public interest, stating that the four petitioners cannot represent millions of Kenyans. In addition, they maintained there is no evidence that Parliament acted unlawfully in approving the proposed transaction.
Petitioners Push to Block Safaricom Stake Sale
On the other hand, Senior Counsel and Wiper leader Kalonzo Musyoka urged the court to extend the orders. He argued that the National Assembly had already approved the Safaricom stake sale effective April 1 in alleged violation of earlier court directions.
Kalonzo also requested that Vodafone Kenya Limited be enjoined as a respondent and sought permission to amend the petition. He emphasised Safaricom’s economic importance, noting its contribution to Kenya’s GDP and its role as a major employer.
He further highlighted the global reach of the company’s M-Pesa platform, which has become a key driver of financial inclusion.
Court Allows Amendments in Safaricom Stake Sale Petition
Meanwhile, the court allowed the filing of an application to amend the petition to include Vodafone Kenya Limited as a respondent. It also deferred other pending applications, including requests for joinder of additional parties.
The judges indicated that timelines for those applications would be set after the conservatory orders issue is resolved.
What Next for Safaricom Stake Sale Case
The Safaricom stake sale case will now proceed to a hearing of the conservatory orders application within the next 10 days. The outcome will determine whether the government can move forward with the proposed transaction.
The ruling is expected to have significant economic and legal implications, given Safaricom’s central role in Kenya’s telecommunications sector and broader economy.
For now, the High Court’s decision ensures that no changes occur to the shareholding structure until the legal questions surrounding the Safaricom stake sale are fully addressed.
