High Court Declares Sale of Government’s 15% Safaricom Stake Unconstitutional

The High Court has declared unconstitutional the sale of the Kenyan government’s 15 per cent stake in Safaricom Plc, ordering that the shares be returned to State ownership.

A three-judge bench ruled that the divestiture process violated the Constitution and several other laws, citing inadequate public participation, concealment of material information and shortcomings in the required approval process. The court found that the government failed to demonstrate that Kenyans were given a meaningful opportunity to participate in the decision to dispose of a major public asset.

The ruling places the multi-billion-shilling transaction under serious legal scrutiny and requires the State to take steps to restore the shares to public ownership. The proposed transaction had involved the government disposing of part of its Safaricom holding to Vodacom.

The case could have significant implications for future government divestiture of State assets, particularly where public participation and statutory approval requirements are involved.