Kenya’s Court of Appeal rejected applications by the government and Vodacom to suspend a High Court judgment that voided the sale of a 15% Safaricom stake. The appellate panel said the stay requests lacked merit, according to separate reports by The Standard and Tuko. The ruling leaves the High Court’s restoration orders in force while the substantive appeal continues.
The disputed transaction transferred 6,009,814,200 Safaricom shares to Vodafone Kenya Limited for KSh204.3 billion. The transfer proceeded after an earlier Court of Appeal decision lifted conservatory orders that had blocked it. On 15 September, the High Court found the divestiture unlawful and ordered the 15% holding restored to the Kenyan government.
INTERIM RELIEF WAS REFUSED
The government and Vodacom asked the appellate court to pause implementation of the September judgment until their intended appeals were determined. A three-judge panel comprising Luka Kimaru, Johnson Okello and Kathurima M’Inoti refused that interim relief. Its decision addressed the stay applications rather than finally deciding the legal challenge to the divestiture.
In filings reported in September, the Attorney General and Treasury argued that the KSh204.3 billion consideration was non-refundable and that reversing a transfer of quoted securities would be difficult. They also said Vodafone Kenya had paid an additional KSh40.2 billion for future dividend rights. The appellate court’s refusal means those arguments did not secure a suspension of the restoration orders.
CONTROL REMAINS UNDER LEGAL CHALLENGE
Vodacom’s purchase had lifted its effective Safaricom holding to 55% from 39.9%, while the government’s stake fell to 20%. Safaricom said after the September judgment that the transaction had already been completed and that it was reviewing the decision. The latest ruling therefore prolongs uncertainty over the ownership effect of the contested 15% block without resolving the underlying appeal.
The next procedural milestone will be directions or a hearing date for the substantive appeal. Current reports did not disclose that timetable. Until further relief or a final appeal decision, the High Court orders remain operative.