The Kenyan High Court has ruled that the government's sale of a 15% stake in Safaricom to Vodacom was unconstitutional. The decision, issued on September 15, 2026, nullifies the transaction and orders the shares be returned to the state.
The ruling comes less than three months after the deal was finalized, marking a significant legal reversal. Vodacom had acquired the stake from the Kenyan government in a transaction that had raised questions about compliance with local laws. The court found the process used to divest the government's shareholding to be legally flawed.
Vodacom has announced plans to appeal the decision. The telecoms group had previously completed the purchase, which was part of a broader strategy to increase its presence in Kenya's mobile market. The court's ruling has created uncertainty around the future of the stake and the potential implications for Vodacom's operations in the country.
The case highlights ongoing legal challenges in Kenya's telecommunications sector, with regulatory and constitutional issues playing a central role. The outcome may influence future investments and regulatory frameworks in the region.
