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On Tuesday, the three-judge bench ordered that the shares be restored to government ownership, finding that the process failed to involve meaningful public participation and concealed or misrepresented material information about the transaction.
The total dividend for the year stands at Sh2.00 per share, including an interim dividend of Sh0.85 per share paid in March 2026, making it the largest payout in Safaricom's history.
He questioned why the government did not wait for the High Court to deliver its judgment before completing the transaction, saying the move undermined confidence in constitutional litigation
With the transaction now concluded, the National Treasury is set to receive Sh204.3 billion from the disposal of a 15 per cent shareholding in Safaricom. Together with an advance dividend arrangement worth Sh40.2 billion, the deal is expected to generate a total of Sh244.5 billion for the government
The judges said the State had satisfied the conditions required for the grant of a stay and found that public interest weighed heavily in favour of allowing the transaction process to proceed.
Kaluma said National Assembly Finance and National Planning Committee sought the best price for the public asset and challenged testimony that failed to present a credible alternative valuation.
Under the approved plan, the government will sell about six billion shares, equivalent to 15 per cent of Safaricom, at Sh34 per share. The sale is projected to raise roughly Sh204.3 billion.
Residents called for ring-fencing of the divestiture proceeds to ensure funds go only to pre-approved, high-value projects across all 47 counties, rather than just mega infrastructure projects benefiting certain regions.
The Sessional Paper 3 outlines plans to sell six million Safaricom shares to Vodacom at Sh34 per share, representing a 23.6 per cent premium over the six-month average price ending December 2, 2025. Following the sale, the government’s stake will reduce from 35 per cent while Vodacom’s holding rises from 40 per cent to 55 per cent.
The union has warned that the proposed divestiture could threaten job security and union representation, urging lawmakers to approve the deal only with binding safeguards, including mandatory union recognition and stronger labour protections.
KASIB proposed adjustments to the transaction structure to increase public participation and deepen market activity, recommending that the government increase the divestiture to 20 percent, with an additional five percent offered to the Kenyan public through the Nairobi Securities Exchange (NSE).
The Kenya Bankers Association has supported a 15 percent government divestiture in Safaricom, urging that 5% be reserved for the public to ease debt pressures and deepen capital markets.