In courts: Directions to be issued in case challenging proposed sale of Safaricom stake

The High Court is set to issue directions today in a petition challenging the proposed sale of the government’s 15 per cent stake in Safaricom PLC to Vodacom Group, a transaction valued at over Sh200 billion.

The petition, filed by Tony Gachoka and Fredrick Ogola, seeks to halt the proposed deal on grounds of alleged lack of transparency, undervaluation, and violation of public interest safeguards governing the disposal of strategic State assets.

The petitioners have named the Cabinet Secretaries for the National Treasury and Information, Communications and the Digital Economy as respondents, alongside the Communications Authority of Kenya, the Competition Authority of Kenya, the Attorney General, Safaricom PLC, and Vodacom Group.

According to court filings, the petitioners fault the National Treasury’s indication that it intends to sell the government’s shares at Sh34 per share, which they describe as grossly undervalued when compared to estimates placing the shares’ intrinsic value between Sh70 and Sh80 per share.

They argue the pricing could result in significant value loss to the public.

The petition further raises concerns over the alleged absence of competitive bidding and disclosure in the transaction.

The petitioners say there has been no indication of multiple bidders, clarity on valuation methodologies, or disclosure of transaction advisers involved in determining the share price.

They contend that the proposed sale may contravene the Public Procurement and Asset Disposal Act, 2015, and the Privatisation Act, 2025, which require transparency, competitiveness, and parliamentary oversight in the disposal of strategic public assets.

Among the orders sought are conservatory orders restraining the State and other agencies from executing or implementing the transaction pending the hearing and determination of the case.

The petitioners are also seeking orders compelling disclosure of valuation reports, advisers involved in the deal, and approvals granted.

The government has previously defended the proposed transaction as part of a broader strategy to raise capital, deepen strategic partnerships, and optimise the state’s portfolio in commercial entities.

Bhang legalisation hearing

The High Court is set to begin hearing today a constitutional petition challenging the criminalisation of cannabis, popularly known as bhang, in a case filed by the Rastafari Society of Kenya (RSK).

The hearing comes after Justice Bahati Mwamuye allowed the National Authority for the Campaign Against Alcohol and Drug Abuse (Nacada) to join the proceedings as an interested party, citing the agency’s central role in drug policy and regulation.

State counsel Christopher Marwa told the court that Nacada’s participation would assist in reaching a well-informed determination, given its statutory mandate on public health and drug control.

Counsel for the petitioners, Shadrack Wambui, also supported the application, saying it was in the interest of justice for the agency to be heard.

The petition challenges sections of the Narcotic Drugs and Psychotropic Substances Control Act that criminalise the cultivation, possession, and use of cannabis.

The Rastafari Society argues that cannabis is central to its religious practice and that its criminalisation violates constitutional rights, including freedom of religion, dignity, privacy, and equality.