Kenya’s Court of Appeal has lifted an injunction that had stalled the government’s planned sale of a 15% stake in Safaricom to Vodacom, paving the way for a significant KES204.3 billion (approximately $1.6 billion) transaction. The ruling, issued on June 30, 2026, overturns a High Court order that had frozen the deal since March, following legal challenges based on constitutional and transparency grounds. Petitioners had argued that the disposal of a portion of a public asset to a foreign entity necessitated broader public consultation and enhanced accountability mechanisms.
The Treasury had previously warned that the protracted delay posed a substantial risk to investor confidence and could compel Vodacom to revise pricing, withdraw, or postpone the transaction. A three-judge bench of the Court of Appeal determined that the public interest favoured the continuation of the deal, even as the broader legal case proceeds. This decision is a critical development for President William Ruto’s administration, which aims to secure private capital for extensive infrastructure development, including roads, railways, airports, power lines, dams, and irrigation projects, thereby alleviating pressure on the national budget without resorting to increased debt or taxation.
Upon completion, Vodacom’s shareholding in Safaricom is expected to increase from 40% to approximately 55%. Concurrently, the Kenyan government’s stake will decrease to 20%. The transaction also encompasses Vodacom’s acquisition of Vodafone International Holdings’ remaining 12.5% interest in Vodafone Kenya, positioning Vodacom as the sole proprietor of that entity. The deal remains contingent on securing final regulatory approvals, which may include a waiver from the mandatory offer requirement to other Safaricom shareholders.
This judicial clearance is pivotal, revitalising one of Kenya’s most substantial planned asset disposals and offering the government a viable avenue to generate funds. Safaricom, as Kenya’s preeminent listed company and a consistent dividend contributor, makes the sale of state holdings a financially advantageous yet politically sensitive manoeuvre. For the Treasury, the proceeds are earmarked for crucial infrastructure investments and fiscal consolidation. For Vodacom, the transaction solidifies its control over East Africa’s largest telecommunications operator and deepens its engagement with Safaricom’s burgeoning mobile money, data, and enterprise service segments.
However, the case underscores the ongoing debate surrounding privatisation in Kenya, with critics advocating for greater transparency and public engagement in the divestment of strategic national assets. Investors will now closely monitor the progress of remaining regulatory approvals, the outcome of the mandatory offer exemption process, and the potential for further delays stemming from the ongoing broader legal challenge. The successful conclusion of this deal could set a precedent for future state asset sales as part of Kenya’s broader funding strategy.
... Kenyan Court of Appeal Greenlights KES204.3 Billion Safaricom Stake Sale to Vodacom, Navigating Constitutional Challenges ... Naijaonpoint.