Court of Appeal Rejects Government Bid to Suspend Safaricom Share Sale Ruling
Kenya’s Court of Appeal has rejected an application by the government and Vodacom seeking to suspend a High Court judgment that declared the sale of the State’s 15 per cent stake in Safaricom unconstitutional, invalid and null and void. The decision, delivered on Tuesday, October 13, 2026, leaves the September 15 judgment in force while the legal challenge against the transaction proceeds.
A three-judge appellate bench comprising Justices Luka Kiprotich Kimaru, Johnson Okello and Kathurima M’Inoti ruled that the applications had failed to meet the legal threshold required for a stay. The government, represented by the Office of the Attorney General, and Vodacom had asked the court to suspend the High Court orders pending the hearing and determination of their intended appeal.
The dispute centres on the government’s sale of approximately 6.01 billion Safaricom shares, representing 15 per cent of its stake in the telecommunications company, to Vodafone Kenya Limited, a subsidiary of the Vodacom Group. The transaction was valued at approximately KSh 204.3 billion, with the shares sold at KSh 34 each. The deal was completed in 2026, increasing Vodacom’s effective ownership of Safaricom.
In its September 15 judgment, a three-judge High Court bench comprising Justices Francis Gikonyo, Roseline Aburili and Tabitha Wanyama found that the divestiture had violated constitutional and legal requirements. The court faulted the process over issues including inadequate public participation and insufficient disclosure of material information about the transaction. It subsequently declared the sale invalid, quashed related approvals and agreements, and ordered the 15 per cent stake to be restored to the Government of Kenya on behalf of the public.
The government challenged the ruling, arguing that implementing the orders before the appeal was heard could cause substantial financial and administrative complications. Officials maintained that the shares had already been transferred and that reversing the transaction would involve changes to settled securities records, regulatory approvals and the handling of the purchase price. The State also raised concerns about possible effects on fiscal planning, investor confidence and Kenya’s foreign-exchange position.
The transaction also involved a separate payment of approximately KSh 40.2 billion linked to future dividends on the government’s retained Safaricom shareholding. The government argued that restoring the shares without resolving the financial implications could expose the State to losses and complicate the reversal of the completed deal. However, the Court of Appeal declined to grant the requested suspension, leaving the High Court’s orders in force.
The original legal challenge was brought by petitioners, including activist Tony Gachoka, who questioned the legality and transparency of the sale. Their concerns included the adequacy of public participation, the valuation of the shares and the procedures followed in approving the transaction. The government has maintained that the sale was lawfully approved and intended to raise funds for national infrastructure development.
The latest ruling does not conclude the wider legal dispute or determine the final outcome of the government’s substantive appeal. Instead, it means the High Court judgment has not been suspended while the challenge continues. The eventual resolution will determine the legal status of the share transfer and the steps required to implement the courts’ final decisions.
The case has become a significant test of public accountability, the management of state assets and the legal requirements governing major government transactions. As proceedings continue, attention will remain on the substantive appeal and its implications for the government, Vodacom, Safaricom shareholders and Kenya’s telecommunications sector.
