Kenya to appeal court ruling against sale of Safaricom stake to Vodacom

By Reuters News

NAIROBI, Sept 16 (Reuters) - Kenya's government will appeal a court ruling that ordered the cancellation of a deal in which it sold an extra 15% stake in telecoms firm Safaricom SCOM.NR to South Africa's Vodacom VODJ.J, Finance Minister John Mbadi said on Wednesday.

  • The $1.6 billion deal, announced last December and completed in June, lifted Vodacom's shareholding in Safaricom to 55%, while the Kenyan government's stake fell to 20%.

  • It was part of Kenyan President William Ruto's efforts to bolster public finances, as East Africa's biggest economy faces hefty annual debt repayments that absorb 40% of government revenue.

  • On Tuesday, Kenya's High Court said the sale of the Safaricom stake did not adequately involve the public and was marked by concealment of material information, Kenyan television station NTV Kenya reported. It ordered the 15% stake returned to the government.

  • Mbadi said he was confident the transaction followed the law and involved the public.

  • "We intend to make that case fully on appeal. The National Treasury will pursue this appeal vigorously," he told reporters.

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

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