Vodacom to keep 15% Safaricom stake pending Court of Appeal’s ruling on $1.9 billion deal

African telecom operator Vodacom Group has said the latest court ruling allows it to keep the additional 15% of Safaricom shares that gave it control of the Kenyan telecom operator until a “fast-tracked” appeal is heard. 

According to a corporate filing on the Johannesburg Stock Exchange (JSE) on Friday, Vodacom said the Court of Appeal maintained that its subsidiary, Vodafone Kenya, remains the registered holder of the Safaricom shares it bought from the Kenyan government on 30 June. The Court also said the purchase price paid to the government is to be preserved pending the hearing of the appeal.

“The Court decided not to determine the application but instead recorded to fast-track the substantive appeal,” Vodacom said in the statement, adding that “the prevailing status quo in respect of the shares and purchase consideration shall be maintained pending the hearing of the appeal.”

Also read: Vodacom to challenge Kenyan High Court’s decision nullifying 15% Safaricom stake purchase.

In respect of the 15% share acquisition that increased Vodacom’s stake in Safaricom from 40% to 55%, the Court of Appeal maintained that: 

“The effect of the order is that VKL remains the registered holder of the Safaricom shares acquired from the Government of Kenya (GoK) on 30 June 2026, and the corresponding purchase consideration paid to GoK is to be preserved, pending the hearing of the appeal,” Vodacom noted in the statement.

This comes after a Kenyan court ruling nullified Vodacom’s 15% acquisition of the 35% stake that the GoK owned in Safaricom. The Court declared the process illegal and ruled that the $1.9 billion deal violated public-finance management laws. 

While the ongoing appeal process is expected to be fast-tracked, Vodacom said it remains confident in the strategic rationale for the acquisition and will continue to update shareholders on developments relating to the appeal process. 

Vodacom – Safaricom stake sale: What you should know

In December, the GoK under President William Ruto’s administration decided to sell part of its 35% stake in Safaricom. The stake sale was pivotal for the government, as it stood at the centre of how the government plans to fund a significant chunk of public spending.

With limited room to borrow more or raise taxes further, Kenya has turned to selling stakes in state-owned assets, including Safaricom and Kenya Pipeline Company, to finance infrastructure projects under Ruto’s $39 billion development plan. The government wants to build key infrastructure such as railways, airports, roads, power lines, dams, and irrigation, and cut transportation costs

Vodacom agreed to raise its stake in Safaricom from 40% to 55% by buying 15% of the Kenyan government’s shares in Safaricom. This then reduces the Kenyan government’s share to 20%.  The deal also ensures that it buys Vodafone International Holdings’ remaining 12.5% stake in Vodafone Kenya, becoming its sole owner.

By implication, Vodacom owns the stake through its subsidiary, Vodafone Kenya. 

The sale, completed in June 2026, raised about 204.3 billion shillings ($1.6 billion), along with an additional 40.2 billion shillings ($300 million) from the securitisation of future dividends.

However, a Kenyan Court ruling in September by Judges Francis Gikonyo, Roselyne Aburili and Tabitha Ouya ordered that the 15% stake in Safaricom Plc be returned to the government after it found that the divestiture was done against the Constitution and did not involve public participation, as the 15% share belonged to the people of Kenya. 

Vodacom then noted that it will appeal the Kenyan High Court decision, noting that it followed due process in the 15% stake acquisition. But if the appeal is unsuccessful, the Kenyan government would have to refund the $1.9 billion it already received for the stake sale.