The Kenya High Court has ruled that the government's 15 percent stake sale in Safaricom PLC to Vodacom Group was unconstitutional, ordering the shares returned to the state. A three-judge bench in the Constitutional and Human Rights Division found the divestiture violated the Constitution and several statutes. The court cited inadequate public participation in the process as a key factor.
Cabinet Secretary John Mbadi has vowed to challenge the court's decision, stating the Treasury will pursue an appeal. Mbadi emphasized that the transaction followed legal procedures. The ruling nullifies the sale, effectively restoring the government's stake in the telecom giant.
The decision comes amid ongoing debates over state asset management and transparency in public sector transactions. Legal experts note the ruling could set a precedent for future asset sales. The government is now expected to initiate legal proceedings to contest the court's order.
The case highlights tensions between regulatory compliance and executive authority in Kenya's public sector. The outcome may influence future policy on state-owned enterprises and stake sales.
