Kenya’s High Court has declared the sale of a 15 per cent stake in Safaricom to South Africa’s Vodacom Group null and void, ruling that the transaction contravened the Constitution and the law.
A three-judge bench found that the government failed to undertake meaningful public participation before proceeding with the divestiture.
The court ordered the restoration of the 15 per cent shares.
“Based on our analysis, findings and holdings in respect of the various issues identified for determination, we are satisfied that the petitioners have proved on a balance of probabilities that the divestiture in question was undertaken and procured in contravention of the Constitution and the law,” the court said.
“It was, therefore, invalid, null and void.”
The ruling challenges a planned transaction valued at approximately $1.6 billion, which would have increased Vodacom’s ownership of Safaricom to 55 per cent. The deal was part of the government’s efforts to raise funds through the sale of state assets.
The court’s decision raises fresh questions over the government’s management of public assets and the legal requirements governing the sale of state-owned shares.
The development follows earlier legal challenges to the proposed transaction. The Court of Appeal subsequently lifted orders that had temporarily blocked the government’s planned sale, adding to the uncertainty surrounding the deal.
The government and Vodacom are expected to consider their legal options as the implications of the High Court ruling unfold.
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