The High Court has paused the proposed Safaricom stake sale, directing that the status quo be maintained as a legal challenge against the government’s plan to sell a 15 percent stake proceeds. The ruling, delivered on April 16, 2026, in Nairobi, allows time for the court to hear an application for conservatory orders.
The decision follows a dispute over the National Treasury’s plan to dispose of part of its holdings in Safaricom, one of Kenya’s largest telecommunications firms. The court said it will hear arguments within 10 days before issuing a substantive ruling on the matter.
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Court Extends Status Quo in Safaricom Stake Sale
Justice Francis Gikonyo, speaking on behalf of a three-judge bench, said the court would first consider submissions on conservatory orders. He added that earlier directives requiring the preservation of the status quo would remain in place.
“We have taken the view to hear the application for conservatory orders within 10 days, consider arguments, and thereafter render a ruling,” Justice Gikonyo said.
The court also deferred other pending applications, including requests to join additional parties. It indicated that timelines for those matters would be set after determining the conservatory orders application.
Legal Arguments Intensify in Safaricom Stake Sale
Respondents in the case argued that no formal conservatory orders currently exist. They said earlier directions issued by Justice Lawrence Mugambi were limited to preserving the status quo and had since lapsed.
According to the respondents, the petition remains incomplete. They told the court that petitioners had been directed to amend their filings, which means the case lacks sufficient grounds for substantive relief.
They also challenged claims of broad public interest, stating that four petitioners cannot represent millions of Kenyans. In addition, they argued that there was no evidence that Parliament acted unlawfully when it approved the Safaricom stake sale.
Kalonzo Pushes for Expanded Petition
Senior Counsel Kalonzo Musyoka urged the court to maintain the orders. He argued that the National Assembly had already approved the transaction, allegedly in violation of earlier court directives.
He also requested that Vodafone Kenya Limited be added as a respondent. The court allowed the filing of an application to amend the petition to include the company.
Kalonzo highlighted Safaricom’s economic role, noting its contribution to Kenya’s GDP and employment. He also cited the global reach of its M-Pesa platform.
What Happens Next in Safaricom Stake Sale Case
The High Court will now proceed to hear the conservatory orders application within the set timeline. After reviewing arguments from both sides, the bench is expected to issue a ruling that could determine whether the Safaricom stake sale moves forward or remains suspended.
The outcome could have broader implications for government asset sales and investor confidence in Kenya’s regulatory and legal framework. For now, the status quo remains in place as the court considers the next steps.
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