Court Lifts Freeze on Sh244 Billion Safaricom Deal, Setting Stage for Next Legal Fight

The Court of Appeal has cleared the way for the government to proceed with its planned sale of a 15% stake in Safaricom to Vodacom after lifting High Court orders that had temporarily frozen the transaction.

The ruling allows the National Treasury to continue with the deal while the constitutional case challenging the sale remains pending before the High Court. The proposed transaction is valued at Sh204.3 billion for the 15% stake, with the government also expected to receive an upfront Sh40.2 billion payment tied to future dividends, bringing the broader Vodacom deal to about Sh244.5 billion.

The government currently owns 35 percent of Safaricom and plans to reduce its stake to 20 percent after the sale. In court, Treasury defended the transaction as part of a broader fiscal plan, saying the proceeds would support infrastructure projects, budget financing, fiscal stability and long-term national savings.

It also argued that the High Court freeze had halted a time-sensitive commercial deal and risked disrupting investor confidence and foreign capital inflows. Prolonged uncertainty, the State warned, could push Vodacom to renegotiate the price, delay the transaction or abandon it altogether.

The petitioners, however, argue that the sale lacks transparency, public participation and proper constitutional safeguards for the disposal of public assets. They also claim the Sh34 per share price undervalues the government’s stake, while the transfer would give Vodacom majority control of a strategic communications company.

Their lawyers have indicated they will move to the Supreme Court to challenge the Court of Appeal ruling, meaning the transaction could still face another legal hurdle even after the appellate court’s decision.