Kenya to Challenge Court Ruling Cancelling Vodacom-Safaricom Stake Sale

Kenya's government will appeal a High Court ruling that cancelled the sale of an additional 15% stake in telecoms operator Safaricom to South Africa's Vodacom, Finance Minister John Mbadi said on Wednesday.

The $1.6 billion transaction was announced last December and completed in June. It raised Vodacom's holding in Safaricom to 55%, while the Kenyan government's stake was reduced to 20%.

The deal formed part of President William Ruto's efforts to strengthen public finances, with East Africa's largest economy facing substantial annual debt repayments that consume 40% of government revenue.

On Tuesday, the High Court ruled that the stake sale had not sufficiently involved the public and was marked by the concealment of material information, according to Kenyan television station NTV Kenya. The court ordered that the 15% stake be returned to the government.

Mbadi said he was confident the transaction complied with the law and included public participation. "We intend to make that case fully on appeal. The National Treasury will pursue this appeal vigorously," he told reporters.

Vodacom has also indicated it will appeal the ruling, while Safaricom said it was reviewing the High Court judgment and its implications.