Safaricom suit thrown out

NAIROBI – A Kenyan Court of Appeal dismissed a suit seeking to stop the flotation of the country’s leading mobile operator Safaricom yesterday, clearing the way for the government to go ahead with the offer.

Three opposition legislators had sought to block the country’s biggest-ever initial public offering, saying it had not been done transparently. “This court has no jurisdiction to grant the orders sought, since the superior court also declined to stop the sale,” said Justice Erastus Githinji, who read a joint ruling by the highest court of the land.In October, a High Court judge also dismissed the suit by three opposition legislators.The Members of Parliament say the offer should not be made until an undisclosed third shareholder is made public.Safaricom was founded in 1999 in what was thought to be a joint venture between state-owned Telkom Kenya and Britain’s Vodafone, but media reports suggested a Guernsey-registered firm secretly held a five per cent stake.The government plans to open the offer period for the 25 per cent stake at the Nairobi Stock Exchange before the year’s end, despite calls for a postponement to next year.Nampa-Reuters”This court has no jurisdiction to grant the orders sought, since the superior court also declined to stop the sale,” said Justice Erastus Githinji, who read a joint ruling by the highest court of the land.In October, a High Court judge also dismissed the suit by three opposition legislators.The Members of Parliament say the offer should not be made until an undisclosed third shareholder is made public.Safaricom was founded in 1999 in what was thought to be a joint venture between state-owned Telkom Kenya and Britain’s Vodafone, but media reports suggested a Guernsey-registered firm secretly held a five per cent stake.The government plans to open the offer period for the 25 per cent stake at the Nairobi Stock Exchange before the year’s end, despite calls for a postponement to next year.Nampa-Reuters