Kenya’s High Court cancels sale of 15% of Safaricom to Vodacom

The court criticized the authorities for failing to organize sufficiently informed public participation and for concealing or misrepresenting important aspects of the transaction. According to the ruling reported by several Kenyan media outlets, the deal was not merely a transfer of shares but effectively transferred control of Safaricom to a foreign majority shareholder.

The transaction was finalized on June 30 after the Nairobi Court of Appeal lifted a conservatory measure four days earlier. Vodacom then acquired the 15% stake held by the state, along with an additional effective 5% stake from Vodafone International Holdings, bringing its economic stake in Safaricom to approximately 55%. The Kenyan government’s share decreased from 35% to 20%.

The sale of the 15% stake represented about 204.3 billion Kenyan shillings, based on a price of 34 shillings per share. The state also received approximately 40.2 billion shillings from an agreement concerning future dividend rights linked to the 20% stake it retained, bringing the total revenue associated with the entire arrangement to about 244.5 billion shillings.

When the sale was initially announced in December 2025, the Kenyan Treasury presented it as a means to raise non-tax revenue for development while maintaining a strategic stake in the country’s leading telecom operator.

On September 15, Vodacom stated that it was reviewing the judgment and its implications. The group announced that it would appeal to the Court of Appeal and seek a stay of execution of the ruling during the appeal process.