Court Blocks Govt from Selling Safaricom Shares to Vodacom

The High Court has temporarily stopped the government’s planned sale of its 15 percent stake in Safaricom to Vodacom after issuing conservatory orders pending the hearing and determination of a constitutional petition challenging the transaction.

A three-judge bench made up of Justices Francis Gikonyo, Roselyne Aburili and Tabitha Ouya ruled that the proposed deal raises major constitutional and public interest concerns touching on transparency, economic sovereignty and data privacy.

Judges directed all respondents involved in the matter to immediately halt any steps connected to the transaction until the court fully determines the petition.

The petitioners challenging the sale argued that the government’s stake had been grossly undervalued by more than Ksh 250 billion.

They have doubt on the legality and transparency of the deal by arguing that the sale of such an important asset needed wider public involvement as well as constitutional examination prior to its execution.

Concerns Over State Assets and Public Interest

The conservatory orders now place a temporary freeze on one of the largest telecommunications-related transactions in Kenya’s history.

Ruling introduces fresh uncertainty over the future ownership structure of Safaricom, which remains one of the country’s most profitable companies and a critical player in the digital economy.

Also Read:CS Mbadi Addresses Possibility of Govt Splitting Safaricom 15% Divestiture

The case before the court revolves around the potential dangers of weakening the influence of the state within the telecommunication industry through the acquisition process, coupled with the threat of foreign control of the country’s infrastructure and consumer data and financial information systems.

Court observed that the matters before it were of great constitutional importance, thus deserving of preservation orders until the matter was determined finally.

Background to the Disputed Transaction

The legal challenge stems from an agreement announced on December 3, 2025, under which the government planned to sell 6.01 billion Safaricom shares to Vodafone Kenya for Ksh 204.3 billion.

Also Read:Safaricom Confirms Vodafone’s Plans to Acquire Government Stake

The transaction would reduce the government’s ownership in the telecommunications giant from 35 percent to 20 percent.

Under the same arrangement, Vodafone Kenya was expected to hold 55 percent ownership following the completion of the transaction and a parallel internal restructuring exercise.

The deal also included the transfer of future dividend rights to Vodafone in exchange for an upfront payment of Ksh 40.2 billion.

Follow our WhatsApp channel for instant news updates

Vodafone Kenya Limited plans to acquire 15% of the issued shares in Safaricom PLC from the Government of the Republic of Kenya. PHOTO/Safaricom/Vodafone.