Kalonzo Hails High Court Ruling Nullifying Safaricom Stake Sale to Vodacom

Wiper Party leader Stephen Kalonzo Musyoka has welcomed the High Court's decision to nullify the government's sale of a 15 per cent stake in Safaricom PLC to Vodacom, describing the ruling as a victory for Kenyans.

In a statement issued on Wednesday, September 16, Kalonzo, who served as lead counsel in the case challenging the transaction, said the judgment had vindicated concerns raised by the petitioners.

He called for the 15 per cent stake to be restored to the Government of Kenya, arguing that the transaction should not stand in light of the court's findings.

High Court Declares Safaricom Deal Unconstitutional

A three-judge High Court bench on Tuesday declared the sale of the 15 per cent Safaricom stake unconstitutional, null and void and ordered that the shares be returned to State ownership.

The court found that the process leading to the transaction did not comply with constitutional and legal requirements, including meaningful public participation and the disclosure of material information relating to the deal.

The judges also quashed decisions and approvals connected to the transaction, including Sessional Paper No. 3 of 2025.

In addition, the court nullified any merger, acquisition or takeover arising from the transaction.

Sh204.3 Billion Stake Sale

The government sold its 15 per cent stake in Safaricom to Vodacom for KSh204.3 billion, with the transaction completed on June 30, 2026.

The deal also involved KSh40.2 billion paid to the National Treasury as an advance against future dividends from the remaining 20 per cent stake retained by the State.

The two components brought the total value involved in the transaction to KSh244.5 billion.

The High Court ruling now puts the completed transaction in question and could have significant implications for the ownership structure of one of Kenya's largest telecommunications companies.

Kalonzo Calls Safaricom a Strategic National Asset

Kalonzo maintained that Safaricom should be treated as a strategic national asset because of its central role in Kenya's telecommunications sector, mobile-money services and the handling of citizens' data.

He argued that the company's significance to the country's economy and digital infrastructure warranted greater scrutiny of any transaction involving State-owned shares.

The former Vice President said the court's decision reinforced the concerns raised by those who challenged the government's handling of the sale.

Government to Appeal Ruling

The government is expected to challenge the High Court decision.

Treasury Cabinet Secretary John Mbadi confirmed on Wednesday that the State will appeal the judgment, setting the stage for further proceedings before the Court of Appeal.

The planned appeal means the legal dispute over the 15 per cent Safaricom stake is likely to continue, with the final ownership position dependent on the outcome of the appellate process.

For now, the High Court order requires the stake to be returned to State ownership, while the government prepares its legal challenge.