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Court Declares Safaricom Share Sale Illegal, Orders Reversal
The bench found the sale lacked meaningful public participation and violated procurement and market rules, ordering the 15% stake restored to state ownership.
- On Tuesday, Kenya's High Court nullified the government's 15 per cent stake sale in Safaricom PLC, declaring the transaction unconstitutional and ordering the shares returned to State ownership.
- The Court found the deal was marred by "obscurities, misrepresentations and concealment of material information," ruling it was "formulated, undertaken and approved by Cabinet and the National Assembly without any reasonable meaningful qualitative and quantitative public participation."
- Regarding legal compliance, the transaction violated the Capital Markets Act and Competition Act, and the Court quashed advisory services from KCB Investment Bank Limited for procurement violations under the Public Procurement and Asset Disposal Act and Article 227 of the Constitution.
- Restoring the 15 per cent stake is possible, the Court held, rejecting arguments that the transaction was irreversible, as the bench quashed all approvals and mandated the shares be returned to the Government of Kenya.
- Future divestitures must adhere to constitutional principles of transparency and accountability under Articles 10 and 201, as the ruling invalidates the Session Paper Number Three of 2025, setting legal precedent for public asset management.
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On 15 September 2026, the High Court of Kenya cancelled the transfer by the State of 15 per cent of Safaricom's capital to Vodacom, a transaction valued at 204.3 billion Kenyan Shillings, or about $1.6 billion. The Court ordered the return of the shares to the State. The Kenyan government and Vodacom announced their intention to appeal. The transaction had been finalized on 30 June, following the lifting by the Court of Appeal of a measure which…
Coverage Details
Total News Sources25
Leaning Left1Leaning Right1Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 20%
C 60%
R 20%
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