Safaricom sale of Government’s 15% stake to Vodacom now heads to the Court of Appeal, according to National Treasury Cabinet Secretary John Mbadi, who insists that all the required procedures were followed in executing the transaction.

The High Court has nullified the transaction and ordered the 15% stake restored to State ownership, citing shortcomings around public participation, disclosure of material information and other legal and constitutional requirements.

The transaction had been completed on 30 June 2026, following the Court of Appeal’s lifting of the earlier conservatory order.

Safaricom sale of 15% Government stake: What the State Received.

The Government received approximately KSh204.3 billion for the 15% stake, alongside approximately KSh40.2 billion from the monetisation of future dividends, bringing the broader transaction package to roughly KSh244.5 billion. However, this is not necessarily the end of the transaction.

Vodacom has already indicated that it will appeal the High Court decision and seek a stay pending the appeal. Safaricom has also confirmed that it is reviewing the judgment as the legal process continues.

The investor sentiment here is a bit complex.

For many local investors, the Government’s sale attracted reservations. Safaricom is a strategic national asset, and the transfer of a significant portion of the State’s holding to a foreign-controlled group raised questions around valuation, strategic ownership, public participation and the extent of foreign influence over the company.

But from the perspective of foreign and institutional investors, the transaction had a different appeal.

Vodacom’s increased ownership took it to approximately 55%, giving it controlling ownership and allowing Safaricom to be fully consolidated within the Vodacom/Vodafone group.

That potentially changes the strategic direction of Safaricom.

Reducing the Government’s direct ownership from 35% to 20% means less direct State influence over the company, while giving a strategic telecommunications shareholder greater control to pursue capital allocation, regional expansion and integration opportunities across the Vodacom ecosystem.

For institutional and international investors, that can be viewed positively because it potentially reduces some of the political and policy-related uncertainty associated with State ownership, while creating a clearer path for Safaricom to participate in a broader regional and potentially global telecommunication, technology and financial-services strategy.

So, the investment interpretation is not simply “Government sold Safaricom — good or bad?”

The more useful question is: “What does the change in ownership structure mean for Safaricom’s long-term strategic direction?” And that is precisely why the current court process matters.

For now, the 15% stake remains subject to the ongoing legal process. Vodacom’s appeal and application for a stay will be important developments to watch.

“For Safaricom investors, therefore, the immediate issue is not the underlying business thesis suddenly changing. It is the uncertainty around the ownership structure and whether the completed transaction ultimately survives the judicial process,” said Dedan Maina, Investment analyst at Ketu Capital.