The Kenyan High Court has ruled that the government’s sale of a 15 percent stake in Safaricom to Vodacom Group was unconstitutional, ordering the shares returned to the state. A three-judge bench in the Constitutional and Human Rights Division declared the transaction null and void, citing violations of the Constitution and several statutes. The court found that the divestiture process lacked adequate public participation, undermining transparency and accountability.
The ruling, issued on September 15, 2026, came less than three months after the transaction was completed. Legal documents show that the sale was part of a broader strategy to increase Vodacom’s ownership in Safaricom, one of Kenya’s largest telecommunications companies. The court’s decision has triggered a legal reevaluation of the deal, with implications for both the government and the private sector.
The judgment highlights ongoing tensions around state-owned enterprises and foreign investment in Kenya’s telecommunications sector. The court’s emphasis on public participation suggests a growing focus on democratic governance in corporate transactions. The government is now expected to take steps to reclaim the shares, potentially leading to further legal and regulatory changes.
The case underscores the complexities of balancing economic growth with constitutional obligations, as Kenya continues to navigate its path toward greater private sector involvement in key industries.
