Kenya's High Court has ruled that the government's sale of a 15 percent stake in Safaricom PLC to Vodacom Group was unconstitutional, ordering the shares be returned to the state. A three-judge bench in the Constitutional and Human Rights Division declared the transaction null and void, citing procedural irregularities in the divestment process. The ruling, issued on Monday, follows a court case that challenged the legality of the stake transfer.
Members of Parliament, including Kiharu MP Ndindi Nyoro, have welcomed the decision, calling for the restoration of the shares and the return of funds involved in the transaction. Nyoro praised the judiciary for upholding the rule of law and ensuring transparency in public asset management. The court's decision marks a significant development in Kenya's ongoing efforts to regulate state-owned enterprises and ensure accountability in major financial transactions.
The ruling has sparked discussions about the implications for corporate governance and public ownership in the telecommunications sector. Safaricom, a key state-owned company, plays a central role in Kenya's digital infrastructure. Legal experts are now expected to analyze the ruling's impact on future government transactions with private entities. The case highlights the judiciary's role in safeguarding public interests in major economic decisions.
