Amanze Chinonye
Kenya’s High Court has declared the government’s sale of a 15% stake in Safaricom Plc to Vodacom Group invalid and ordered the shares returned to state ownership.
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A three-judge bench ruled on Tuesday that the transaction breached constitutional and statutory requirements, including those governing public participation and the disposal of public assets.
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The government sold about 6.01 billion Safaricom shares for 204.3 billion shillings ($1.6 billion), at 34 shillings per share. The transaction was completed on June 30 after the Court of Appeal lifted an order that had temporarily halted the sale.
The High Court also quashed decisions and approvals linked to the divestiture, including Sessional Paper No. 3 of 2025, which had been approved by Parliament.
The judges found that the government had not conducted adequate public participation or disclosed material information about the transaction. They also found that the sale failed to comply with legal requirements governing the disposal of public assets.
The transaction increased Vodacom’s effective stake in Safaricom to 55% and reduced the Kenyan government’s holding to 20%.
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Treasury Cabinet Secretary John Mbadi said the government disagreed with the ruling and would appeal. He said the transaction had complied with the law and undergone Cabinet and parliamentary scrutiny.
Vodacom said it would also appeal and seek a stay of the judgment pending determination of the case.
The government received a further 40 billion shillings under an arrangement linked to future dividends from its remaining Safaricom stake. The High Court ruling puts the ownership of the disputed 15% holding in question pending the appeals.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
