Wiper Patriotic Front party leader Kalonzo Musyoka/FILEWiper leader Stephen Kalonzo Musyoka has welcomed the High Court judgment declaring the sale of a 15 per cent stake in Safaricom PLC unconstitutional, describing the decision as a victory for Kenyans.
Kalonzo, who was lead counsel in the constitutional petition challenging the transaction, said the three-judge bench had quashed the sale and the parliamentary approval of the transaction.
“The people have won. Safaricom is coming home,” Musyoka told a press conference at SKM centre Wednesday.
According to Kalonzo, the court also ordered the 15 per cent stake to be restored to the Government of Kenya on behalf of Kenyans.
He said the judgment addressed concerns raised by the petitioners over the manner in which the transaction was undertaken, including public participation, disclosure of transaction documents and procurement of advisers.
The former Vice President said Safaricom should be treated differently from an ordinary commercial entity because of its importance to the Kenyan economy and the millions of citizens who use its services.
He cited the company's role in telecommunications and mobile money, particularly M-Pesa, as reasons why he considers it a strategic national asset.
Kalonzo also questioned the valuation of the shares, saying the government sold 6.01 billion shares, representing 15 per cent of Safaricom, at Sh34 each for Sh204.3 billion.
He said Treasury additionally received Sh40.2 billion as an advance against future dividends on the 20 per cent stake retained by the government, bringing what he described as the total amount taken off the books to Sh244.5 billion.
“You cannot price what you refuse to value,” he said, arguing that the Government had not disclosed the valuation method used to arrive at the price.
Kalonzo further said the court found that the transaction raised concerns relating to intergenerational and intragenerational equity, national security and competition law.
He also criticised the government for completing the transaction after the Court of Appeal lifted conservatory orders on June 26, saying the appellate court had not ruled on the substantive legality of the sale.
The statement comes as the government faces the prospect of further legal proceedings over the judgment, with Kalonzo saying respondents had indicated they would seek a stay.
He warned parties against transferring or dealing with the shares in a manner contrary to the High Court judgment, saying such action could attract contempt proceedings.
Kalonzo, however, went beyond the Safaricom case to link the judgment to the 2027 General Election, urging Kenyans to register as voters and remain vigilant.
“Only the ballot can give us a remedy,” he said, calling on Kenyans to guard the country's public assets.
He said the Safaricom case should serve as a warning about the disposal of public assets, while acknowledging that the legal battle could continue through appeals.
