Safaricom Stake Stays Void: Court of Appeal Refuses State and Vodacom Bid to Suspend RulingSafaricom Stake Stays Void: Court of Appeal Refuses State and Vodacom Bid to Suspend Ruling
Key Highlights
- The Court of Appeal has refused applications by the government and Vodacom to suspend the High Court judgment that declared the sale of the state's 15% Safaricom stake unconstitutional, null and void.
- The transaction, completed on 6 July 2026, moved about 6.01 billion shares to Vodafone Kenya for roughly KSh 204.3B ($1.57B), plus KSh 40.17B ($309M) in lieu of future dividends.
- Reversing the sale would mean unwinding settled Central Depository entries and securing cross-border approvals, while the government warns it may have to repay or withdraw a large capital inflow.
The Court of Appeal has refused to suspend the High Court judgment that voided the sale of the government's 15% stake in Safaricom, leaving the 6.01 billion shares formally due back with the state while the main appeal waits for a hearing.
The ruling matters because the sale, valued at about KSh 204.3B ($1.57B), was a flagship state divestiture, and the refusal removes the breathing space the Treasury and Vodacom had asked for. Investors in the telecoms group now face an unresolved question over who owns the stake.
What the Court of Appeal decided
The government, acting through the Attorney General, Dorcas Odour, and Vodacom asked the appellate judges to stay the 15 September judgment while they pursue their intended appeal. Tony Gachoka and the other petitioners opposed the bid.
The judges found the applications lacked merit. "We therefore reject the government and Vodacom's applications to suspend the High Court judgment," the bench said, as quoted in press reports of the ruling.
A three-judge High Court bench of Francis Gikonyo, Roselyn Aburili and Teresia Wanjiku Ouya had declared the divestiture unconstitutional, invalid, null and void. It also quashed the decision in Sessional Paper No. 3 of 2025 and the related approvals and agreements. Mwenendo earlier reported on how the High Court ordered the stake back to the State.
The deal that is now in doubt
The transaction covered 6,009,814,200 ordinary shares, bought by Vodafone Kenya Limited, a subsidiary of the Vodacom group, and was completed on 6 July 2026. The price was about KSh 204.3B ($1.57B). The buyer also agreed to pay about KSh 40.17B ($309M) in lieu of future dividends on the shares the government retains.
Reported foreign-currency inflows tied to the sale were about KSh 202.3B ($1.56B). That figure is central to the State's argument that reversal carries a cost.
Why reversal is not simple
The government has told the court that restoring the stake would require unwinding entries already settled at the Central Depository and Settlement Corporation and obtaining cross-border regulatory approvals. It also warned that the orders could require repaying or withdrawing a large capital inflow, and that they affect third parties, including investors holding publicly traded Safaricom shares.
As Mwenendo earlier reported, Safaricom reviewed the first judgment and said the transaction had been finalised in June. The company's investor communications remain the place to watch for any statement on the share register.
What the appeal will test
Both the government and Vodacom intend to appeal. The State says the appeal raises questions about Section 87A of the Public Finance Management Act, the role of Parliament in approving the sale, and the quashing of regulatory approvals. No hearing date has been reported.
For now, the Court of Appeal's decision keeps the High Court orders in force. The Judiciary of Kenya is the place to find the cause list once a date is set.
What it means for investors and future sales
Share prices and the register will react to each step. Mwenendo's weekly market coverage showed foreign investors net selling KSh 737M of shares last week, a reminder that sentiment is already fragile.
Other planned state divestitures will be read against this case. Buyers and advisers will look closely at public participation, valuation and approval procedures, the grounds on which the petitioners challenged the Safaricom sale.
In Summary
- Who asked for the ruling to be suspended?
- The government, through the Attorney General, and Vodacom, whose subsidiary Vodafone Kenya bought the stake. Petitioners led by Tony Gachoka opposed.
- What did the Court of Appeal decide?
- It rejected the applications to suspend the High Court judgment that declared the sale of the 15% Safaricom stake unconstitutional, null and void.
- When were the sale and the High Court ruling?
- The sale was completed on 6 July 2026; the High Court judgment was delivered on 15 September.
- Where does the dispute stand now?
- The High Court orders stay in force while the main appeal waits for a hearing date, which has not been reported.
- Why does the State resist reversal?
- It says reversal would mean unwinding settled Central Depository entries, obtaining cross-border approvals and possibly repaying a large capital inflow.
- How much was the sale worth?
- About KSh 204.3B ($1.57B) for 6,009,814,200 shares, plus about KSh 40.17B ($309M) in lieu of future dividends.