Regulation

More problems for Kenyan government’s Safaricom stake sale

More problems for Kenyan government’s Safaricom stake sale

A three-judge High Court bench in Kenya has ordered that a 15% Kenyan government stake transferred to Vodacom should revert to the State after ruling that the transaction was unconstitutional.

In a filing to the Johannesburg Stock Exchange (JSE), South Africa’s Vodacom Group has said it will appeal the judgment at the Court of Appeal (CoA) and seek orders temporarily suspending its implementation pending that appeal.

Vodacom’s statement says: “Subsequent to the Appeal Order, the High Court of Kenya provided a judgment on a petition against the Acquisition, which judgment was handed down on 15 September 2026. Vodacom will review the judgment, and its implications.

“As interim steps, an appeal against the decision will be lodged with the Court of Appeal, as well as an application to stay the matter until an appeal is heard.”

Kenya's government will also appeal the ruling, according to Finance Minister John Mbadi. Mbadi said he ⁠was confident the transaction followed the law and involved the public.

Reuters quotes him as saying: "We intend to make that case fully on appeal. The ⁠National Treasury will pursue this appeal vigorously.” The proposed acquisition forms part of the Kenyan government’s efforts to raise funds for infrastructure projects and help ease budgetary pressures.

The Business Day news service explains that the problem is the constitutional validity of the transaction. In its judgement on Tuesday, the court said Kenya’s government had failed to have robust public consultations about the deal, the pricing framework for Safaricom’s valuation was arbitrary and the competition implications of an effective takeover had not been considered.

The sale, valued at about Sh204 billion (US$1.58 billion) has faced several legal challenges, though it seemed in June this year to be back in track when Kenya’s Court of Appeal lifted an injunction blocking the government’s planned sale.



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