Kalonzo Warns Govt Against Concluding Sale of Safaricom Shares

Wiper Patriotic Front (WPF) leader and United Opposition co-principal Kalonzo Musyoka has warned the government against proceeding with the proposed sale of part of its shareholding in Safaricom PLC, saying the move would undermine Kenya’s ownership of one of its most strategic national assets.

In a statement, Kalonzo argued that the proposed sale of the government’s 15 per cent stake in Safaricom to South Africa’s Vodacom would reduce Kenya to a minority shareholder in what he described as the country’s “crown jewel.”

“The proposed sale of Kenya’s 15 per cent stake in Safaricom PLC to Vodacom would reduce the Republic to a minority shareholder in its own crown jewel, a national telecommunications asset of strategic, economic and security significance. This we cannot and will not accept,” Kalonzo said.

The former Vice President maintained that although the Court of Appeal had lifted conservatory orders suspending the transaction, the legal dispute over the proposed sale was far from over.

“The Court of Appeal has now lifted the conservatory order. But the lifting of that order is not a green light. It is not judicial endorsement of the transaction. The legal battle continues, and the substantive questions of law and public interest remain squarely before the courts,” he said.

Kalonzo cautioned prospective buyers against rushing to conclude the transaction before the pending court cases are determined.

“To those who would rush to conclude this sale before those questions are answered, we say plainly: caveat emptor. Let the buyer beware,” he stated.

He further argued that any deal concluded while court proceedings are still ongoing would be exposed to legal and constitutional risks.

“Any transaction concluded in the shadow of live litigation, against the expressed opposition of the Kenyan people, and without transparent parliamentary sanction, is a transaction concluded at risk,” Kalonzo said.

He vowed that the opposition would continue challenging the proposed sale through the courts, Parliament and public engagement.

“We will pursue every lawful avenue in the courts, in Parliament, and before the people to ensure that Kenya does not surrender control of Safaricom on the altar of opaque dealmaking,” he added.

Last week, the Court of Appeal lifted conservatory orders that had suspended the government’s planned sale of a 15 per cent stake in Safaricom to Vodacom, allowing the transaction to proceed.

The government plans to channel proceeds from the proposed sale into the National Infrastructure Fund and the Sovereign Wealth Fund.

In March, High Court Judge Lawrence Mugambi temporarily halted the proposed Sh204 billion transaction following a petition filed by Fredrick Ogola and Tony Gachoka, who questioned issues relating to data sovereignty, public participation and constitutional compliance.

In May, Kalonzo also filed a separate petition seeking to stop the sale, citing alleged constitutional violations.

Later that month, a three-judge bench comprising Justices Francis Gikonyo, Roselyne Aburili and Tabitha Ouya suspended the transaction, citing unresolved concerns over data sovereignty, public participation and other legal issues.

The suspension followed the National Assembly’s approval of the government’s plan to partially divest from Safaricom in April, paving the way for the State to dispose of part of its stake through the Nairobi Securities Exchange’s Block Trade Platform.