Kalonzo hails High Court ruling nullifying Sh244.5bn Safaricom-Vodacom deal

NAIROBI, Kenya Sep 16 – Wiper Party leader Stephen Kalonzo Musyoka has welcomed the High Court decision nullifying the government’s sale of a 15 per cent stake in Safaricom PLC to Vodacom, describing the ruling as a victory for Kenyans.

Kalonzo, who was the lead counsel for the petitioners in the case, said the judgment had vindicated concerns raised over the transaction and called for the shares to be returned to the Government of Kenya.

A three-judge High Court bench on Tuesday declared the transaction unconstitutional, null and void, ordering the 15 per cent stake to revert to State ownership.

The court found that the process leading to the sale failed to comply with constitutional and legal requirements, including meaningful public participation and disclosure of material information relating to the transaction.

The judges also quashed decisions and approvals connected to the transaction, including Sessional Paper No. 3 of 2025.

The court further nullified any merger, acquisition or takeover arising from the transaction.

The government completed the sale of the 15 per cent stake to Vodacom on June 30, 2026, for Sh204.3 billion.

The transaction also included Sh40.2 billion paid to the National Treasury as an advance against future dividends from the remaining 20 per cent stake retained by the State.

The two payments brought the total value involved in the transaction to Sh244.5 billion.

Kalonzo argued that Safaricom should be treated as a strategic national asset because of its central role in Kenya’s telecommunications sector, mobile money services and the handling of citizens’ data.

He said the High Court decision affirmed the need for constitutional and legal safeguards when dealing with strategic State assets.

The government is expected to appeal the decision.

Treasury Cabinet Secretary John Mbadi confirmed on Wednesday that the State will challenge the High Court ruling, setting the stage for a further legal battle over the ownership of the 15 per cent Safaricom stake.

The appeal will determine whether the orders requiring the shares to be returned to State ownership will stand.