The government has moved to the Court of Appeal seeking to overturn orders that halted the planned sale of a 15 per cent stake in Safaricom to Vodacom Group, warning that the delay could jeopardise a Sh204 billion deal and shake investor confidence.
The appeal comes just days after the High Court froze the transaction, dealing a major blow to what would be one of the largest corporate deals in Kenya’s history.
Treasury CS John Mbadi says the continued suspension of the deal could have far-reaching consequences, arguing that the uncertainty risks undermining Kenya’s reputation among international investors and delaying much-needed capital inflows into the economy.
At the centre of the dispute is the government’s plan to sell its 15 per cent stake in Safaricom to South Africa-based Vodacom.
If completed, the deal would raise Vodacom’s ownership in the telecommunications giant and hand it majority control of East Africa’s most profitable company.
The government insists the transaction is crucial not only for attracting foreign investment but also for supporting development programmes and strengthening public finances.
However, opponents of the deal have challenged it in court, arguing that Safaricom is a strategic national asset whose ownership should not be altered without broader public participation and scrutiny.
The High Court agreed to temporarily stop the sale pending the hearing and determination of the case, forcing the government back to court in a race against time to rescue the transaction.
The latest legal battle now sets the stage for a high-stakes showdown over the future ownership of Safaricom, a company whose influence stretches across telecommunications, mobile money, banking and digital services in Kenya.
With billions of shillings on the line and investor confidence at stake, the Court of Appeal’s decision could determine whether the controversial deal proceeds or remains stuck in legal limbo.
