Kenya's High Court has ruled that the government's sale of a 15% stake in Safaricom to Vodacom was unconstitutional, nullifying the transaction. The decision, issued by a three-judge bench in the Constitutional and Human Rights Division, states the process used to divest the government's shareholding was flawed. The court ordered the shares be restored to the state.
The ruling has sparked reactions from political leaders. Wiper Party leader Kalonzo Musyoka praised the decision, calling it a victory for Kenyans. He stated the court's judgment vindicated efforts to challenge the transaction. The government had sold the stake earlier this year as part of a broader economic reform agenda.
Vodacom, the South African telecoms group, has announced plans to appeal the ruling. The company had completed the purchase of the additional 15% stake in Kenya's leading mobile network operator. The appeal will likely focus on the legal procedures and the validity of the court's decision.
The case highlights ongoing debates over state asset management and corporate acquisitions in Kenya. The outcome could influence future government policies on stake sales and regulatory frameworks.
