By Benadeta Mwaura - Reporter
Kenya, May 15 ,2026 - A legal dispute over the Kenyan government’s plan to sell part of its stake in Safaricom has returned to the courts, setting the stage for a decisive ruling on one of the country’s most sensitive public asset transactions.
The case, now before the High Court, will determine whether the state can proceed with the proposed divestiture of its 15 percent shareholding in Safaricom, a transaction valued at approximately Sh204.3 billion (about $1.6 billion) and central to ongoing fiscal restructuring efforts.
At the heart of the dispute is a petition challenging both the legality and valuation of the deal. The government plans to reduce its stake in Safaricom from 35 percent to 20 percent, paving the way for Vodacom to consolidate majority control of 55 percent following the acquisition.
Petitioners argue that the process lacked sufficient public participation and parliamentary scrutiny, and have also raised concerns that the asset may have been undervalued.
The share price has been set at Sh34, a figure critics say does not reflect Safaricom’s intrinsic value as Kenya’s most profitable and strategically important listed company.
The court has already issued interim conservatory orders halting implementation of the transaction pending a full hearing, effectively freezing one of the most consequential state asset sales in recent years.
The legal challenge also reflects deeper anxieties about the role of Safaricom in Kenya’s economy.
Beyond being a telecommunications provider, the company operates as a critical financial infrastructure node through its dominant mobile money platform M-Pesa, which underpins billions of shillings in daily transactions across households, small businesses, and government services.
Safaricom is widely regarded as a “crown jewel” of Kenya’s corporate sector, with a dominant market position in mobile telephony and digital payments, and a significant contribution to national revenue and employment.
The government’s argument, however, is rooted in fiscal necessity. The proposed sale is part of a broader strategy to raise non-tax revenue and ease budgetary pressure at a time of widening deficits and rising debt servicing costs.
Proceeds from the transaction would also provide immediate liquidity support to the Treasury, alongside structured dividend arrangements tied to the remaining state stake.
More from Kenya
The dispute has therefore evolved beyond a commercial transaction into a constitutional question involving public finance, national security, and control over strategic digital infrastructure.
Petitioners have further argued that Safaricom’s role extends beyond commerce into sensitive national systems, including data infrastructure and financial flows, making ownership changes a matter of public interest rather than private deal-making.
Similar arguments have been raised in court filings questioning whether such a transaction meets constitutional thresholds for disposal of public assets.
The case has now been escalated through multiple judicial stages, including consolidation of petitions and empanelment of a multi-judge bench, reflecting the legal system’s recognition of its national significance.
At the same time, the deal has already triggered broader political debate about privatization, state asset management, and whether Kenya risks losing long-term control over strategic economic platforms in exchange for short-term fiscal relief.
If the court upholds the transaction, it could clear the way for one of the largest telecom ownership restructurings in East Africa’s history. If it blocks or delays it further, it may force the government to rethink its approach to financing the budget deficit.
For now, the future of Safaricom’s ownership remains uncertain, caught between fiscal urgency, constitutional scrutiny, and its outsized role in Kenya’s digital economy.