Government Appeals High Court Ruling Nullifying Safaricom Share Sale
The government has moved to challenge a High Court decision that nullified the sale of its 15 per cent stake in Safaricom PLC, setting the stage for a fresh legal battle at the Court of Appeal.
The government has moved to challenge a High Court decision that nullified the sale of its 15 per cent stake in Safaricom PLC, setting the stage for a fresh legal battle at the Court of Appeal.
Attorney General Dorcas Oduor has formally filed a Notice of Appeal against the judgment delivered by a three-judge High Court bench on September 15, 2026.
The court had declared the government’s partial divestiture of its Safaricom shares null and void, finding that the process did not meet constitutional requirements, particularly regarding meaningful public participation.
The government has rejected the findings and maintained that the transaction was conducted through the required procedures.
National Treasury Cabinet Secretary John Mbadi said the government disagrees with the judgment and intends to challenge the court’s conclusions before the appellate court.
Mbadi maintained that the partial sale of the government’s 15 per cent holding in Safaricom was undertaken as part of the State’s financial management strategy and that safeguards had been incorporated into the transaction.
The CS particularly defended measures that were put in place to protect Safaricom employees, dealers and business partners.
According to Mbadi, the government does not agree with the court’s assessment that the transaction suffered from constitutional and procedural shortcomings. He said the National Treasury would present its case fully during the appeal process.
The three-judge bench faulted the process through which the divestiture was undertaken, including what it considered inadequate public participation and the handling of information relating to the transaction.
The dispute centres on the government’s decision to sell its 15 per cent stake in the telecommunications company to Vodafone Kenya Limited, effectively linked to Vodacom Group.
Safaricom confirmed that the transaction had already been completed on June 30, 2026, after the Court of Appeal lifted conservatory orders that had previously halted the process.
The company said it would continue operating its businesses in Kenya and Ethiopia while the legal proceedings surrounding the transaction continue.
The government’s appeal therefore comes after the share transfer had already been completed, creating a complicated legal and commercial situation that will now be considered by the appellate courts.
The High Court’s decision had followed a case challenging the government’s partial divestiture of the strategic telecommunications company’s shares.
The petitioners had raised questions over the process used to approve and execute the sale, including whether members of the public were adequately involved in a decision concerning a major State asset.
The High Court ultimately found that the constitutional requirements had not been sufficiently met and declared the transaction null and void.
The government, however, maintains that the transaction was legitimate and that the State acted within its mandate.
Mbadi has further argued that the government’s responsibility to pursue national development and prudent financial management should be considered alongside other constitutional obligations.
The National Treasury says it will now pursue the appeal through the established legal channels and provide further information as the case progresses.
The matter is expected to attract considerable attention because Safaricom is one of Kenya’s most significant companies and the State’s shareholding has strategic and financial implications.
The appeal will give the Court of Appeal an opportunity to consider the legal questions surrounding the divestiture and determine whether the High Court was correct in declaring the transaction unconstitutional and null and void.
For now, the dispute remains before the courts, with the government seeking to overturn the High Court decision while the judgment declaring the sale invalid remains the subject of the pending appeal.
The outcome of the next stage of the legal process will determine the fate of the government’s former 15 per cent stake and could have wider implications for how future sales of State assets are conducted.
