Appeals Court Lifts Orders Blocking Sh204.3 Billion Safaricom Stake Sale
News Updated: 26 June 2026 15:43 EAT
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The Court of Appeal has lifted High Court conservatory orders that had temporarily halted the government's proposed sale of its 15 per cent stake in Safaricom Plc to Vodacom Group Ltd, ruling that the State's appeal is arguable and allowing the transaction process to proceed while the constitutional petition remains pending before the High Court.
The appellate court found that the government had established sufficient legal grounds to challenge the High Court's decision, which had frozen the transaction in May following petitions questioning the legality and constitutionality of the planned disposal of the State's shares. The judges held that the appeal raised serious issues deserving consideration.
At the centre of the dispute is the government's plan to sell its 15 per cent shareholding in Safaricom for Sh204.3 billion. The transaction would reduce the National Treasury's stake in Kenya's largest telecommunications company from 35 per cent to 20 per cent.
Under the proposed deal, Vodacom Group Ltd would acquire the government's shares at Sh34 per share. The South African telecommunications company is also expected to purchase an additional five per cent stake from Vodafone Group, increasing Vodacom's ownership in Safaricom to 55 per cent and making it the majority shareholder.
The Attorney General argued before the Court of Appeal that the High Court erred in issuing conservatory orders, maintaining that the transaction had not been completed and that the petitioners had failed to demonstrate that irreversible harm would occur if the deal proceeded pending the hearing of the main case.
The National Treasury also informed the court that delaying the transaction was disrupting government financing plans and could negatively affect investor confidence. The State argued that the proposed sale forms part of its broader strategy to raise funds for infrastructure development and strengthen public finances.
The High Court had suspended the transaction after petitioners challenged the sale, arguing that the disposal of such a significant public asset required greater transparency, meaningful public participation and full compliance with constitutional provisions governing the management of public resources.
The petitioners further contended that proceeding with the sale before the constitutional issues were determined could prejudice the public interest and permanently alter the government's ownership in one of Kenya's most valuable listed companies.
Despite lifting the conservatory orders, the Court of Appeal did not determine the merits of the constitutional petition. Instead, the judges ruled that the government's appeal presented arguable legal questions and that maintaining the injunction was not justified at this stage of the proceedings.
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FELIX MAKONA
FACT FINDER AND DATA DRIVEN JOURNALIST. DATA MINING AT IT'S BEST. GET FACTS RANGING FROM MATTERS DISABILITY AND INCLUSION, POLITICS, ECONOMY, SPORTS AND GENERAL NEWS AROUND THE WORLD