A three-judge bench of the High Court has issued conservatory orders halting the government’s proposed sale of its 15 percent stake in Safaricom PLC to Vodacom Group pending the hearing and determination of a constitutional petition challenging the transaction.

The bench comprising Justices Francis Gikonyo, Roselyne Aburili and Tabitha Ouya ruled that the petition raises weighty constitutional and public interest issues that cannot be ignored at this stage.

“We are satisfied that the case is of public interest and the balance favours granting the orders,” the court ruled.

The judges further noted that granting the conservatory orders would not delay the expeditious hearing of the case.

As a result, all respondents have been barred from proceeding with the proposed sale until the petition is fully heard and determined.

In the ruling, the court observed that the intended transaction goes beyond an ordinary commercial deal, stating that the shares are public assets held by the State on behalf of Kenyans.

“The shares sought to be divested are not private holdings in the ordinary commercial sense. They constitute public assets held by the State on behalf of the people of the Republic of Kenya,” the bench ruled.

The judges said the proposed disposal raises constitutional concerns touching on transparency, accountability, public participation and prudent management of public resources.

Petitioners told the court that the government’s stake in Safaricom had allegedly been undervalued by more than KSh250 billion, warning that the sale could expose taxpayers to massive losses and undermine the constitutional principle of value for money.

While the court clarified that it was not making a final determination on the allegations, the judges held that the concerns raised were serious and deserving of constitutional consideration.

The bench also described Safaricom as a strategic national telecommunications and digital infrastructure company whose operations affect millions of Kenyans daily.

According to the judges, the proposed transfer of substantial control to a foreign majority shareholder raises concerns over economic sovereignty, innovation, privacy, data protection, national security and digital sovereignty.

“In today’s digital environment, telecommunications infrastructure carries enormous public significance,” the court stated, noting that entities such as Safaricom hold vast amounts of personal, financial and communications data belonging to millions of citizens.

The petitioners further argued that no adequate financial, security or public interest assessment had been undertaken before the proposed sale.

The court held that although the truthfulness of those allegations would be determined during the full hearing, the subject matter needed to be preserved in the meantime.