The Kenyan High Court has ruled that the government's sale of a 15 percent stake in Safaricom to Vodacom was unconstitutional. The decision, issued on September 15, 2026, nullifies the transaction and orders the shares be returned to the state. The court found the process used to divest the government's shareholding violated legal procedures.
The ruling has created legal and financial uncertainty for the government, as the transaction had already been completed and the proceeds were earmarked for infrastructure projects. The Kenyan Treasury had planned to use the funds for development initiatives under President Ruto's administration.
Vodacom has announced it will appeal the decision. The telecoms group had completed the purchase earlier in 2026, acquiring the stake from the Kenyan government. The court's order now requires the shares to be repurchased by the state.
The case highlights ongoing legal challenges surrounding state asset transfers and regulatory compliance in Kenya's telecommunications sector. The appeal process is expected to take several months, with further legal developments anticipated.
