Kenya to Appeal High Court Ruling Voiding $1.9B Safaricom Stake Sale

The National Treasury has formally signaled its intent to appeal a High Court ruling that nullified the Kenyan government’s planned US$1.9 billion partial divestiture from Safaricom PLC.

The ruling, delivered on September 15, 2026, halts the proposed transaction involving the transfer of a 15% stake in Safaricom PLC from the Government of the Republic of Kenya to Vodafone Kenya Limited.

Speaking on the legal setback, Cabinet Secretary for the National Treasury John Mbadi stated that the ministry is studying the full judgment closely to formulate its grounds for appeal.

The government intends to petition the higher courts to review and overturn the decision, emphasizing the strategic and financial importance of the transaction to the nation’s economic framework.

The controversial divestiture aimed to sell a 15% government stake in East Africa’s most profitable telecommunications provider, Safaricom PLC, to Vodafone Kenya Limited.

Capitalized at approximately US$1.9 billion, the deal was positioned by the National Treasury as a key component of its broader asset-optimization and fiscal-consolidation strategy.

The move was executed under the regulatory preview of the Capital Markets Act (Chapter 485A of the Laws of Kenya) and Regulation 89(2) of the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.

Proceeds from the divestiture were slated to bolster public reserves, fund strategic infrastructure projects, and alleviate severe budget deficit pressures.

The High Court’s decision to void the transaction follows a petition challenging the procedural and legal propriety of the sale.

Critics and petitioners raised concerns regarding transparency, valuation fairness, public participation, and adherence to statutory requirements governing the disposal of public strategic assets.

In its judgment, the High Court determined that the government had failed to fully satisfy mandatory constitutional and statutory conditions required when liquidating public holdings in a national strategic asset.

Consequently, the court declared the divestiture null and void, temporarily barring the transfer of shares and setting aside any agreements executed between the National Treasury and Vodafone Kenya Limited.

Following the judgment, Safaricom PLC issued an official public announcement acknowledging the High Court’s ruling and confirming that it remains compliant with capital markets disclosure requirements while observing the legal proceedings between the primary shareholders.

The decision by CS Mbadi and the Treasury to appeal highlights the elevated stakes surrounding the deal.

For the government, the transaction represents a vital liquidity injection aimed at stabilizing public accounts without worsening debt metrics.

A sustained court injunction threatens to disrupt planned budget expenditures and delays expected foreign direct investment inflows.

Conversely, legal analysts and market observers note that the court’s rigorous oversight reinforces legal compliance and governance standards regarding state-owned assets.

The outcome of the impending appeal will be watched closely by foreign investors, financial institutions, and market regulators as an indicator of legal risk and institutional predictability in Kenya's capital markets.