Safaricom Sh244B Stake Sale Sparks Row as Vodacom Named

Last Updated on March 4, 2026 by miles miles

Safaricom Sh244B Stake Sale Sparks Row as Vodacom Named

A fresh controversy has emerged over a proposed Sh244 billion plan to offload the government’s stake in Safaricom PLC.

Critics claim the restructuring could alter control of Kenya’s largest telecommunications company and strengthen Vodacom Group’s influence over the firm.

The debate has triggered political, legal and economic concerns across the country.

read:Justice Lawrence Mugambi Dismisses Safaricom Bid to Block DCI, DPP Probe

Petition Filed Over Safaricom Share Deal

Veteran journalist Tony Gachoka and economics professor Fredrick Onyango Ogola have filed a constitutional petition at the Milimani High Court.

The petition names several respondents, including:

• The Cabinet Secretary for the National Treasury

• The Cabinet Secretary for ICT

• The Communications Authority of Kenya

• The Competition Authority of Kenya

• The Attorney General

• Safaricom PLC

• Vodacom Group

Lawyer Steve Ogola is representing the petitioners.

The case is currently before High Court Judge Lawrence Mugambi.

read:David Mokaya Sues Safaricom Over Data Sharing That Led to His Arrest

Allegations Raised in the Petition

The petition raises several concerns about the proposed Safaricom share transaction.

Among the claims made by the petitioners are:

• Undervaluation of shares: Petitioners argue the proposed price of Sh34 per share undervalues Safaricom. They claim the intrinsic value could range between Sh70 and Sh80.

• Non-competitive process: The petition alleges the deal was structured as a negotiated block trade without open bidding.

• Constitutional violations: The filing cites Articles 1, 10 and 227 of the Constitution, which deal with public participation and transparency in public asset disposal.

The petition also argues that Parliament’s oversight role may have been limited to a statutory 28-day approval window.

National Security Concerns Raised

Petitioners further argue that Safaricom represents critical national infrastructure.

The company’s M-Pesa platform processes millions of transactions daily and supports Kenya’s digital financial ecosystem.

According to the petition, a change in shareholding structure could affect Kenya’s control over mobile money systems and sensitive telecommunications infrastructure.

read:Safaricom, CBK Seek to Strike Out Paula Rogo’s M-Pesa Fraud Suit

Vodacom Seeks to Exit Case

Reports indicate that Vodacom Group has applied to be removed as a respondent in the case.

The company argues it is not responsible for decisions regarding the government’s shareholding.

Safaricom PLC has also indicated that ownership matters lie with shareholders rather than the company itself.

Government Position on Asset Restructuring

The National Treasury has previously defended proposals to restructure certain state assets.

Officials say the strategy is part of broader efforts to manage public debt and raise capital for development priorities.

They maintain that any Safaricom transaction would comply with Capital Markets Authority regulations and Nairobi Securities Exchange rules.

read:Safaricom Wins Sh930 Million Arbitration Case Against Popote Innovations

Investor Concerns Over Market Stability

Safaricom is one of the largest companies listed on the Nairobi Securities Exchange.

Millions of Kenyans hold shares in the telecom firm either directly or through pension funds.

Market analysts warn that uncertainty around ownership changes could affect investor confidence if the issue is not clarified.

What Happens Next

The Safaricom share controversy continues to generate debate across political, legal and financial circles.

Any proposed restructuring will likely face scrutiny from regulators, investors and the courts.

For now, the allegations remain claims awaiting determination through legal and regulatory processes.