Vodacom keeps control of Safaricom stake as Kenyan court fast-tracks appeal

Kenya’s Court of Appeal has opted to fast-track Vodacom’s challenge to a High Court ruling that voided its acquisition of a controlling stake in Safaricom, and will not rule separately on the company’s application for a stay order.

Vodacom disclosed the decision in an announcement on the Stock Exchange News Service (SENS): “The Court decided not to determine the application but instead recorded to fast-track the substantive appeal.” In the meantime, “the prevailing status quo in respect of the shares and purchase consideration shall be maintained pending the hearing of the appeal,” meaning Vodacom retains control of the shares it bought from the Kenyan government.

The deal, worth roughly R34.5 billion (about $2.1 billion) at completion in June 2026, covered a further 20 percent of Safaricom — 15 percent from the Kenyan government and 5 percent from Vodafone Group — lifting Vodacom’s holding to a 55 percent controlling stake.

On September 15, a three-judge bench of the High Court declared the 15 percent government-stake sale unconstitutional, null and void, ordering the shares restored to the state. The judges held that the divestiture had proceeded without the meaningful public participation required by Kenya’s constitution, with critical details kept from public scrutiny. Both Vodacom and Kenya’s National Treasury said they would appeal.

“Our long-term strategic partnership with Safaricom remains firmly intact,” a Vodacom spokesperson said. The company added it “remains confident in the strategic rationale for the Acquisition and will continue to update shareholders on any material developments relating to the appeal process.”