The High Court has nullified the government’s KSh204.3 billion sale of a 15 per cent stake in Safaricom to South Africa’s Vodacom Group, ruling that the transaction violated the Constitution and the law.
In a judgment delivered on September 15, 2026, a three-judge bench declared the transaction invalid and ordered the 15 per cent stake to be restored to the Government of Kenya on behalf of the public.
The deal had been completed on June 30, 2026, significantly increasing Vodacom’s ownership of Safaricom, Kenya’s largest telecommunications company.
Court Questions How Deal Was Presented
At the centre of the case was how the transaction was structured and presented to the public.
The judges found that material information concerning the deal had been withheld and that the transaction had been presented as a partial government divestiture when, in substance, it resulted in Vodacom gaining effective control of Safaricom.
The court consequently quashed approvals related to the transaction and declared the sale null and void.
The ruling represents a major setback for the government, which had expected to raise more than KSh200 billion from selling part of its Safaricom shareholding.
The transaction formed part of the State’s broader privatisation programme aimed at raising capital from government assets and reducing pressure on public finances.
What the Ruling Means for Safaricom Ownership
Before the transaction, the Kenyan government and Vodacom each held significant stakes in Safaricom.
The sale transferred an additional 15 per cent of Safaricom to Vodacom, giving the South African telecommunications group a controlling interest in the company.
The court’s order to reverse the transaction could now restore the previous ownership structure if the ruling is implemented in full.
The decision could also trigger further legal proceedings, particularly given the size of the transaction and the fact that the sale had already been completed.
Beyond Safaricom, the judgment could have implications for the government’s wider privatisation agenda by reinforcing requirements around public participation, disclosure and constitutional compliance when disposing of major State assets.
Safaricom remains one of the most valuable companies on the Nairobi Securities Exchange and a significant source of dividend income for both the government and private investors.
The ruling therefore puts one of Kenya’s largest corporate transactions back into uncertainty, with attention now turning to how the government and Vodacom will respond and whether the decision will be challenged in a higher court.
