Kalonzo: Restore Sh204bn Safaricom stake

Wiper Patriotic Front leader Kalonzo Musyoka has demanded the restoration of the 15 per cent stake in Safaricom sold by the government, following a High Court ruling declaring the transaction unconstitutional.

Mr Musyoka, who served as lead counsel in the constitutional petition challenging the sale, said the judgment delivered on Tuesday quashed the transaction, Sessional Paper No 3 of 2025 and the parliamentary approval for the sale. He said the court also ordered the shares to be restored to the Government of Kenya on behalf of citizens.

“The people have won. Safaricom is coming home,” he said.

The former vice president said the court had found fault with the process through which the shares were sold, including alleged failures in public participation and disclosure of transaction documents.

“There was no genuine public participation. The Government chose the buyer, drafted the agreement, and fixed the price before pretending to consult the people. Articles 10 and 118 of the Constitution were violated. The buyer was switched without a word to Kenyans. Cabinet and Parliament approved Vodacom. The Government then substituted Vodafone. Kenyans were never told,” he said.

He further questioned the valuation of the transaction, saying the government sold 6.01 billion Safaricom shares, representing 15 per cent of the company, at Sh34 per share for Sh204.3 billion.

“The Government has never disclosed the valuation method it used to arrive at that price. You cannot price what you refuse to value. If Safaricom's true worth, and the standalone worth of M-Pesa, a platform moving trillions of shillings a year for over 30 million Kenyans, were properly reckoned, the value surrendered runs into hundreds of billions more,” he added.

According to Wiper leader, the National Treasury also received Sh40.2 billion as an advance against future dividends on the 20 per cent stake retained by the government, bringing the total amount involved to Sh244.5 billion.

 He said the government had not disclosed the valuation methodology used to arrive at the price.

He also alleged that the transaction was not subjected to scrutiny under the Competition Act, saying there was no evidence that the Competition Authority of Kenya had approved it and arguing that the transaction was effectively a merger.

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