Government Appeals High Court Ruling Nullifying 15% Safaricom Share Sale

The Kenyan government has moved to challenge a High Court decision that nullified the sale of its 15 per cent stake in Safaricom PLC to Vodacom, setting the stage for a fresh legal battle before the Court of Appeal.

Attorney General Dorcas Oduor has formally filed a Notice of Appeal against the judgment delivered on September 15, 2026, by a three-judge High Court bench. The court had declared the government’s partial divestiture of the Safaricom shares invalid and ordered the stake to be restored to the State.

The government has maintained that the transaction was conducted in accordance with the law and that the proceeds were intended to support national development and infrastructure priorities.

Attorney General Files Notice of Appeal

The Notice of Appeal signals the government's intention to challenge aspects of the High Court judgment before the Court of Appeal.

The government has disputed the court's findings on the legality and procedure surrounding the transaction, maintaining that the divestiture went through Cabinet and parliamentary processes.

The appeal will now provide an opportunity for the government to challenge the High Court's interpretation of the constitutional and legal requirements governing the transaction.

Treasury Defends the Transaction

National Treasury Cabinet Secretary John Mbadi has also rejected the High Court's findings.

Mbadi said the government does not agree that the safeguards incorporated into the transaction amounted to constitutional or procedural violations.

He maintained that the divestiture was designed as a fiscal measure to unlock value from a government-held asset while protecting the interests of Safaricom employees, dealers and business partners.

According to the Treasury, the transaction was subjected to Cabinet consideration, parliamentary scrutiny and approval under the Public Finance Management Act.

The government has also argued that the transaction was consistent with principles of prudent public financial management and the country's development needs.

What the High Court Found

The High Court reached a different conclusion.

The three-judge bench found that the transaction had breached constitutional and legal requirements, including requirements relating to public participation and disclosure of material information.

The court also found that the transaction effectively resulted in Vodacom acquiring control of Safaricom, with Vodacom's stake rising to 55 per cent following the acquisition of the government's 15 per cent interest and a separate transaction involving Vodafone Kenya.

The judges further raised concerns about the handling of information surrounding the transaction, including details of the agreements and the implications of transferring effective control of a company operating critical telecommunications and financial infrastructure.

The court consequently declared the divestiture null and void and ordered restoration of the 15 per cent stake to the Government of Kenya.

A Sh204.3 Billion Transaction

The government sold the 15 per cent stake for approximately Sh204.3 billion, equivalent to Sh34 per share.

The transaction also involved an arrangement concerning future dividend rights attached to the government's remaining shareholding.

The High Court questioned aspects of the valuation, disclosure and process used to complete the transaction, while the government has defended the price and the wider structure of the deal.

Safaricom and Vodacom Await the Next Legal Stage

Safaricom has said the transaction was completed on June 30, 2026, after conservatory orders affecting the deal were lifted by the Court of Appeal.

Vodacom has separately indicated that it intends to challenge the High Court decision and seek a stay as the appeal process proceeds.

The High Court had directed the relevant parties, including the Attorney General, Safaricom and Vodacom, to pursue the appropriate legal process concerning the effect of its judgment pending further proceedings.

Court of Appeal to Consider the Dispute

The dispute now moves into another phase of Kenya's judicial process.

At the centre of the appeal will be questions surrounding the legality of the government's divestiture process, public participation, disclosure of transaction information, valuation and the constitutional obligations associated with the disposal of a significant State-held asset.

For the government, the appeal provides an opportunity to challenge the findings of the High Court and defend the transaction.

For the petitioners, the High Court judgment remains a significant ruling on the constitutional requirements governing the disposal of public assets.

The Court of Appeal will ultimately determine the next legal direction of the dispute.

The case therefore remains unresolved, with the future status of the 15 per cent Safaricom stake now subject to further judicial proceedings.