Kenya Appeals Ruling That Could Unwind a $1.6 Billion Safaricom Stake Sale

NAIROBI — Kenya’s government says it will appeal a High Court ruling that ordered the cancellation of its sale of an additional 15% stake in Safaricom to South Africa’s Vodacom.

The deal, valued at about $1.6 billion, increased Vodacom’s effective ownership of East Africa’s largest telecommunications company to 55% and reduced the Kenyan government’s stake to 20%.

The court found that the transaction did not provide adequate public participation and that material information had not been sufficiently disclosed. Kenya’s Treasury and Vodacom both intend to challenge the decision.

More than a share transaction

Safaricom is one of Kenya’s most influential companies. Its mobile network and M-Pesa payments platform are embedded in daily economic life, giving ownership decisions significance far beyond the stock market.

The ruling raises questions about how governments sell valuable public assets, what information citizens should receive and how much consultation is required before strategic infrastructure changes hands.

What the appeal could decide

An appeals court could uphold the cancellation, reinstate the transaction or require changes to the process. Until that legal path is clearer, the ownership structure of one of Africa’s most important digital companies remains contested.

Why it matters: The case will influence investor confidence, public-asset governance and the balance of control over a telecoms platform used by millions of people. It may also set a wider precedent for major privatisation deals in Kenya.

Source: Reuters. Featured image: Hivisasa.