Kenya High Court Nullifies Vodacom's $2.1 Billion Safaricom Takeover

The High Court of Kenya nullified Vodacom's $2.1 billion acquisition of a stake in Safaricom, ruling that the Kenyan government failed to conduct robust public consultations and used an arbitrary pricing framework for the valuation. The court declared the sale of a 15% government stake unlawful, invalid, and void, finding that the divestiture violated constitutional requirements, procurement rules, and principles of intergenerational equity.

The transaction, which became effective on June 30, 2026, saw Vodacom increase its holding in Safaricom to 55% by purchasing 15% from the Kenyan government and 5% from Vodafone International Holdings. The court's ruling specifically strikes down the government's sale, which removes approximately $2.1 billion (Sh204.3 billion) from state coffers and may require the return of the payment. The bench further noted that the deal gave Vodacom majority control of a strategic national asset without considering competition implications.

Cabinet Secretary for the National Treasury John Mbadi announced that the government will vigorously appeal the decision, maintaining that the transaction underwent proper Cabinet and parliamentary scrutiny. Vodacom also announced plans to appeal the judgment and apply for a stay of the matter. If the ruling stands, Vodacom's effective shareholding in Safaricom will shift from 55% back to 40%.