Kenyan Court Voids Safaricom Stake Sale to Vodacom

Kenya's High Court has declared the government's sale of a 15% stake in Safaricom to South Africa's Vodacom unconstitutional, null and void, ordering the shares returned to the state. The ruling, delivered on September 15, 2026, by a three-judge bench, threatens to unwind one of Kenya's largest corporate transactions less than three months after it closed. The court found the sale process violated constitutional requirements, including meaningful public participation and the disclosure of material information. It characterized the deal as a "disguised takeover" that gave Vodacom control of Safaricom, rather than a simple partial divestment. The judges ruled that regulatory safeguards could not replace a required national security assessment for such a strategic asset. The transaction, completed on June 30, 2026, saw Kenya sell approximately 6.01 billion Safaricom shares at KES 34 each for KES 204.3 billion. The government also received KES 40.2 billion as an advance on future dividends from its remaining 20% stake, bringing the total value to KES 244.5 billion. This deal, combined with a separate purchase from Vodafone, increased Vodacom's effective stake in Safaricom to 55%.