National Treasury Cabinet Secretary John Mbadi has announced that the government has filed an appeal against the High Court ruling that nullified the sale of its 15 per cent stake in Safaricom to Vodacom. The decision to appeal comes after a three-judge bench declared the divestiture null and void, citing a lack of constitutional compliance in terms of public participation and transparency. The court's ruling has significant implications for the government, which had aimed to leverage the sale as part of its broader strategy to manage public resources and generate revenue.
CS Mbadi emphasized that the government believes it adhered to all legal requirements during the divestiture process. "We’ve already done an appeal because we believe we had done all legal requirements," Mbadi stated. He further explained that the National Treasury had undertaken all necessary legal measures and is currently reviewing the judgment to formulate a comprehensive response. "The Executive led the public participation," Mbadi added, indicating that the government had made efforts to engage the public in the process. He assured that further guidance would be provided based on the court's findings.
The High Court's ruling has ordered that the 15 per cent stake in Safaricom be restored to the Government of Kenya, effectively reversing the transaction. The judges criticized the government for not fulfilling constitutional requirements, particularly in terms of meaningful public participation and transparency. They highlighted that material information, including details about the intended buyer, Vodacom, was withheld during the public participation process. This lack of transparency was a key factor in the court's decision to nullify the sale.
The ruling has sparked a new legal battle over the transaction, with the government expected to vigorously pursue its appeal. The stakes are high, as Safaricom is one of Kenya's most profitable companies, and the sale of its shares is a matter of significant public interest. The outcome of the appeal could have far-reaching consequences for the government's future divestiture plans and its approach to public resource management.
As the Treasury considers the court's orders, the case underscores the importance of adhering to constitutional mandates, especially regarding public participation in government transactions. The appeal process will likely be closely watched by stakeholders, including investors, legal experts, and the general public, as it unfolds in the coming months.
