Kenyan High Court is expected to deliver a significant ruling today, Monday, May 18, 2026, on the government’s plan to sell a 15 percent stake in Safaricom PLC to South Africa’s Vodacom Group, a deal valued at Sh204.3 billion that has been held up by a series of legal challenges since it was first announced in December 2025.
The transaction, which involves the National Treasury selling 6.016 billion shares at Sh34 per share, would reduce the government’s ownership in Safaricom from 35 percent to 20 percent. If completed, Vodacom, currently holding a 35 percent stake, would rise to a controlling 55 percent interest in Kenya’s most profitable telecoms firm. The broader transaction, including a Sh40.2 billion advance on future dividends from the government’s residual stake, puts total gross inflows to the state at approximately Sh244.5 billion, according to parliamentary records.
The deal has become one of the most contested financial transactions in Kenya history. Three consolidated petitions, filed by political commentator Tony Gachoka, Professor Fredrick Ogola, and Paul Maina, challenge the sale on constitutional grounds, including concerns over national security, data sovereignty, inadequate public participation, and the prudent use of public resources. Petitioners, represented in part by Senior Counsel Kalonzo Musyoka, have argued that Safaricom, which controls M-Pesa and handles sensitive financial and electoral data of over 30 million Kenyans, should not fall under foreign majority control.
Conservatory orders halting the transaction were first issued on March 23, 2026, by Justice Lawrence Mugambi, who later stepped aside due to time constraints and the matter’s constitutional weight. Chief Justice Martha Koome then appointed a three judge bench, which extended the status quo orders in April 2026 and scheduled today’s ruling.
Vodacom’s chief executive, Shameel Joosub, signaled the company’s eagerness to conclude the deal during a May 11, 2026, earnings call. “We expect an update on this ruling on May 18, 2026. Pending this outcome, we’ll be able to finalize the deal very quickly,” he said, adding that “this transaction was approved by Parliament and in all necessary regulatory bodies but is subject to a status quo order issued by the High Court of Kenya.”
Kenya’s National Assembly adopted a joint parliamentary committee report on March 10, 2026, approving the divestiture with six conditions, including employment protections for Safaricom workers and a requirement that the CEO must be a Kenyan citizen. National Treasury Cabinet Secretary John Mbadi has sought to temper urgency around the timeline, stating:
“We are not using this money for budgetary support. Whether it comes or doesn’t come, our budget will be implemented in the usual way.” Proceeds are earmarked for the National Infrastructure Fund, which is intended to finance roads, railways, energy and water systems.
Today’s ruling is expected to determine whether the conservatory orders blocking the sale should be lifted, extended, or replaced with a final determination on the petitions’ merits.
