The National Treasury will appeal the High Court decision that nullified the sale of the government’s 15 per cent stake in Safaricom PLC to Vodacom Group, Treasury Cabinet Secretary John Mbadi has said. The three-judge High Court bench on Tuesday, September 15, declared the transaction unconstitutional and unlawful and ordered the shares to be restored to State ownership. The ruling came after the transaction had already been completed on June 30, 2026. Mbadi’s decision to appeal sets up a fresh legal battle over one of the government’s largest recent asset transactions.

The government sold approximately 6.01 billion Safaricom shares, representing 15 per cent of the company, to Vodacom at KSh34 per share. The direct share transaction was valued at about KSh204.3 billion. Vodacom completed the acquisition after the Court of Appeal lifted conservatory orders that had temporarily stopped the transaction. The June 30 completion increased Vodacom’s effective interest in Safaricom to 55 per cent. The High Court subsequently considered a petition challenging the transaction and found that the government had failed to meet constitutional and legal requirements. The judges particularly faulted the process for failing to provide meaningful public participation and for concealing or misrepresenting material information about the nature and effects of the transaction. The court therefore declared the divestiture invalid and ordered that the 15 per cent shareholding be returned to the State.

Mbadi’s planned appeal means the government will take the High Court decision to the Court of Appeal. The Treasury has maintained that the Safaricom stake sale was undertaken as part of the government’s broader strategy to unlock value from State assets. The transaction involved the disposal of part of the government’s 35 per cent holding in Safaricom, leaving the State with a 20 per cent stake after completion. The government’s appeal will now seek to overturn the High Court findings and preserve the transaction.

Vodacom has separately announced plans to challenge the High Court decision. In a filing with the Johannesburg Stock Exchange, the South African telecommunications group said it would lodge an appeal at Kenya’s Court of Appeal and seek a stay of the High Court judgment while the appeal is heard. Vodacom had acquired the government’s 15 per cent stake alongside a separate transaction involving a further five per cent interest from Vodafone International Holdings, taking its effective Safaricom holding to 55 per cent. The company said it would review the High Court judgment and its implications as it pursues the appeal.

The High Court ruling does not immediately bring the dispute to an end because both the government and Vodacom are pursuing appeals. The legal process will determine whether the High Court’s order requiring the 15 per cent stake to be restored to the State will stand. For Safaricom, the dispute creates uncertainty over the ownership structure that emerged after the June transaction. Vodacom currently holds the 55 per cent effective interest resulting from the completed acquisition, while the Kenyan government retains its remaining 20 per cent stake. The next stage will therefore be proceedings before the Court of Appeal, including any application for orders suspending implementation of the High Court judgment while the appeals are considered. For now, the KSh204.3 billion share sale has been nullified by the High Court but remains subject to the appeal process.