Safaricom shock: What court ruling means for Ruto’s Treasury plans

President William Ruto's plans to generate substantial revenue for the National Treasury through the sale of Kenya's stake in Safaricom have encountered a significant hurdle. The High Court has ruled the transaction unconstitutional, casting doubt on the deal that was anticipated to provide a crucial cash influx at a time when the government is grappling with fiscal challenges.

In a comprehensive judgment issued on September 15, 2026, the court's three-judge panel declared that the sale of the 15 percent government stake in Safaricom lacked the necessary public participation mandated by the Constitution. This ruling questions whether Treasury officials have factored the anticipated proceeds into their financial planning, and how the government will address the funding gap if the money cannot be accessed.

The ruling forces Treasury to reconsider its strategies, weighing options such as borrowing, expenditure cuts, additional revenue measures, or further asset sales. The government's decision to sell part of its stake in Safaricom was part of a broader strategy to unlock value from State investments and raise funds without imposing an immediate tax burden on Kenyans.

The court's decision raises questions over the government's adherence to constitutional requirements for public asset disposal and could set a precedent for future asset sales. The ruling creates uncertainty for Vodacom's planned acquisition of the government's shares, with the legal battle surrounding the deal already attracting considerable attention.

Treasury may now face greater pressure to identify alternative sources of financing, which could entail additional risks such as increased public debt, politically challenging tax hikes, or further scrutiny of asset sales.