Wiper leader and lawyer Kalonzo Musyoka submitting before the High Court in case challenging sale of Safaricom stake /LEAH MUKANGAI 

 

by JAMES GICHIGI

He said the company sits at the centre of Kenya’s economic structure, pointing to its scale and influence across sectors.  Senior counsel Kalonzo Musyoka has urged the High Court to extend what he termed as conservatory orders stopping the proposed sale of a 15 per cent government stake in Safaricom.

He told a three-judge bench on Thursday that Safaricom remains a critical national asset. Musyoka said the court should preserve it until all constitutional petitions are heard.

 

“Safaricom happens to be the goose that lays the golden egg, contributing significantly to GDP of our economy,” he submitted. He said the company sits at the centre of Kenya’s economic structure, pointing to its scale and influence across sectors.

The Wiper leader argued that developments around the share sale had already moved through state institutions. “This is informed by the fact has approval in their hands from National Assembly effective April 1 to sell subject matter of this petition, that is, 15 per cent shares of Safaricom,” he said.

Musyoka warned that the case could be rendered meaningless if the process proceeds. “If orders are lifted, the rest would be academic,” he said.

Kalonzo urged the court to maintain the status quo pending full hearing of the dispute. The court is handling multiple petitions challenging the legality of the proposed divestiture.

A three-judge bench is now seized of the matter after Chief Justice Martha Koome constituted it for hearing of the cases. At the centre of the dispute is a directive issued by Justice Lawrence Mugambi who ordered that status quo be maintained pending empanelment of the bench.

Kalonzo told the court that Safaricom is not just a private company but a strategic national asset. “The world has taken note. The name M-Pesa, a Kenyan invention, has hit international space,” he referred to Safaricom’s mobile money platform as proof of its global relevance.

He also highlighted its economic footprint adding that it supports millions of livelihoods. Kalonzo said the company’s role goes beyond commerce, contending that it touches national development and financial inclusion.

Respondents in the case include Safaricom, the Attorney General and other state agencies. One of the respondents' lawyer John Ohaga challenged the premise of conservatory orders, saying Justice Mugambi only issued a temporary status quo direction.

This, he said, was pending formation of the bench.

“Orders of status quo cannot supplant conservatory orders. They are not a replacement,” the lawyer said, adding that any status quo direction has now expires and only the court can decide whether to extend it.

The lawyer said an application for conservatory orders is already before the court, adding that the proper stage for determination is during substantive hearing of that application.

“You don’t have a full case that you can determine because the case is still developing,” the lawyer said.

“There are four petitioners. They should not flatter themselves they represent 40 million Kenyans,” counsel said.

Ohaga said Parliament’s actions have not been shown to be unlawful at this stage, dismissing claims that Vodafone Kenya Limited is a foreign entity. The bench is expected to issue directions on the whether to grant conservatory orders to to block the sale pending the hearing of the case. The Star