A planned government move to dispose of a 15 per cent shareholding in Safaricom has been put on hold after the High Court directed that the current position be preserved as a case challenging the deal moves forward.
A three-judge bench issued the directions through Justice Francis Gikonyo, saying it will first hear an application seeking conservatory orders within 10 days before giving its decision. The court at the same time extended earlier status quo directions to remain in force during that period.
“We have taken the view to hear the application for conservatory orders within 10 days, consider arguments, and thereafter render a ruling. In the meantime, the status quo orders issued on March 23 are hereby extended,” Justice Gikonyo ruled.
Judges also postponed consideration of other applications before the court, including those seeking to bring in additional parties, indicating that timelines on those will be issued after the conservatory orders application is determined.
The bench further allowed parties to file an application to amend the petition so as to include Vodafone Kenya Limited in the proceedings as a respondent.
Even so, the court made it clear that there are no active conservatory orders in place. It noted that earlier directions issued by Justice Lawrence Mugambi were limited to maintaining the existing situation pending the formation of the bench.
Lawyers representing the respondents argued that claims of existing conservatory orders are misleading. They told the court that the earlier directions have since lapsed and cannot be treated as binding orders capable of stopping the transaction.
They also maintained that the case is not yet complete, pointing out that the petitioners had been asked to amend their filings, meaning the court is yet to receive a fully developed matter to support any substantive relief.
On public interest claims, the respondents argued that the four petitioners cannot purport to represent the entire country. They further said there has been no proof that Parliament acted outside the law when it approved the proposed sale.
Regarding the intended inclusion of Vodafone Kenya Limited, the respondents insisted that the company is locally registered.
During the proceedings, Senior Counsel and Wiper leader Kalonzo Musyoka urged the court to retain the existing orders, arguing that the National Assembly had already approved the transaction effective April 1 in alleged breach of earlier court directions.
He also sought to have Vodafone Kenya Limited added as the eighth respondent and requested permission to amend the petition.
Kalonzo highlighted Safaricom’s importance to the economy, saying it is a major contributor to national income and a key employer, while also pointing to the global recognition of its M-Pesa platform.
The petition challenges the National Treasury’s plan to sell part of its stake in Safaricom, with the matter now set to proceed to the hearing of the conservatory orders application within the timeline set by the court.