KISUMU, 16 September 2026 – The government will move to court to appeal the High Court decision issued on Tuesday that nullified the proposed partial divestment of its 15 percent shareholding in Safaricom PLC.
The ruling also quashed Sessional Paper No. 3 of 2025, which had been approved by the National Assembly.
Addressing the press in Kisumu, National Treasury Cabinet Secretary John Mbadi said the government remains confident that the process adhered to the law and was consistent with prudent financial management aligned to the country’s fiscal realities.
“The divestment was conceived, developed, and presented to Cabinet and the National Assembly as a carefully considered fiscal measure, designed to unlock value for the Exchequer while safeguarding the strategic nature of an institution that affects over 50 million Kenyans daily,” said CS Mbadi.
He said the National Treasury is analysing the full judgment and will soon clarify, through the appropriate legal channels, the grounds on which it believes the court’s findings warrant further judicial review.
“The right to development was balanced alongside every other obligation imposed by the Constitution, and not set against it,” he added.
CS Mbadi argued that the transaction, which was designed to unlock value from a government-held asset for national infrastructure, was approved by Cabinet, scrutinized by parliamentary committees, and enacted through a National Assembly resolution under Section 87A of the Public Finance Management Act, 2012.
He said this reflects the same principles of prudent public finance management and accountability to future generations that the court invoked.
“We do not accept that the safeguards incorporated into this transaction — including protections for Safaricom’s employees, dealers, and business partners — constitute the constitutional and procedural failures as the court has claimed. We intend to fully present our case on appeal,” he stated.
The CS said the National Treasury will pursue the appeal vigorously and will provide further updates as the matter progresses through the courts.
He reassured investors that Kenya’s judicial system is functioning properly and that the decision should not cause concern, as it will be addressed amicably. Photo Credit: James Keyei
