The Kenyan Court of Appeal ruled on June 26, 2026, to lift the High Court's conservatory orders that had frozen the sale of a 15% stake in Safaricom Plc by the government to Vodacom Group Limited. This decision removes a significant barrier to the $204.3 billion transaction, which has been stalled for several months. The government, represented by the Attorney General, had argued that continued delays threatened the multi-billion-shilling deal and undermined investor confidence, impacting fiscal planning and revenue-generation programs intended for infrastructure and development projects.
The proposed sale involves the National Treasury receiving $204.3 billion for the 15% stake, valued at $34 per share. Additionally, the Exchequer is set to receive a $40.2 billion dividend top-up, which is a loan backed by Kenya's remaining 20% stake in Safaricom. Vodacom had expressed readiness to complete the deal and wire the funds, pending the court's decision. The government has emphasized the urgency of the sale, warning that prolonged uncertainty could cause Vodacom to withdraw or demand revised terms.
The original High Court freeze was initiated on May 18 after a petition by activist Tony Gachoka and others, who raised concerns about the constitutionality and transparency of the sale process. They argued that the transaction would reduce the State to a minority shareholder (20%) while giving Vodacom a controlling majority (55%) in Safaricom, and also implicated Kenya's digital sovereignty and M-Pesa's financial flows. The petitioners had also filed a request with the Judicial Service Commission to remove three Court of Appeal judges handling the case, citing gross misconduct.
While the Court of Appeal has lifted the freeze, the main suit challenging the sale is still scheduled to be heard by the High Court. The petitioners have indicated that they intend to move to the Supreme Court if the Court of Appeal lifted the orders. Meanwhile, the delayed sale previously meant the Treasury was in line to collect an additional $16.1 billion in dividends from its current 35% stake if the transaction remained paused until August 4.
