In a landmark ruling, the High Court of Kenya has nullified the State’s Ksh. 204 billion sale of a 15% stake in Safaricom PLC to Vodafone Kenya Limited and effectively Vodacom Group Limited.
A three-judge bench, comprising Justices Francis Gikonyo, Roselyne Aburili, and Tabitha Ouya, declared the partial divestiture unconstitutional, ordering that the shareholding be immediately restored to public ownership.
The decision unwinds a high-profile transaction completed on June 30, 2026, following an earlier lifting of conservatory orders by the Court of Appeal.
The court found that the government failed to comply with basic constitutional mandates governing the disposal of strategic public assets. Key grounds for the nullification include:
- Inadequate Public Participation: Neither the Cabinet nor the National Assembly subjected the divestiture to qualitative, meaningful public engagement as mandated by Articles 10 and 201 of the Constitution.
- Concealment of Material Facts: The court cited “unexplained obscurity” around transactional details and key documents, including withholding information regarding the buyer’s identity and structural terms.
- Misrepresentation of the Deal: While presented as a standard share sale, the judges observed that the transaction functioned effectively as a foreign corporate takeover, bypassing statutory competitive selection and regulatory merger approvals under the Capital Markets Act and Competition Act.
The multi-billion shilling transaction was structured to channel seed capital into the National Infrastructure Fund:
| Deal Component | Value (Ksh.) | Details |
| Direct 15% Stake Sale | 204 Billion | Transferred 15% of government equity. |
| Dividend Monetization | 40.2 Billion | Upfront payments tied to future dividend rights. |
| Total Transaction Package | 244.2 Billion | Total capital value structured under the package. |
Safaricom PLC acknowledged the verdict in an official public notice issued by Company Secretary Linda Mesa Wambani: “Safaricom PLC notes the High Court of Kenya’s judgment on 15th September 2026… in which the Court has ruled against the divestiture. Safaricom is reviewing the judgment and its implications. Given that the matter remains subject to legal processes, further updates will be provided.”
Safaricom confirmed that operational activities across Kenya and Ethiopia remain unaffected. Meanwhile, Vodacom Group has indicated it will initiate an appeal against the High Court’s ruling.