Kenya’s Court of Appeal has directed that an appeal challenging the government’s sale of a 15% stake in Safaricom PLC to Vodacom Group be fast-tracked, leaving the status of the shares and purchase consideration unchanged pending the outcome of the proceedings.
Vodacom disclosed the development in a regulatory announcement on 16 October 2026, following a court session in Nairobi on 13 October. The court declined to determine an application seeking to stay the High Court judgment that invalidated the transaction and instead directed that the substantive appeal be expedited.
The dispute relates to Vodacom’s acquisition of an effective additional 20% interest in Safaricom, comprising a 15% stake purchased from the Government of Kenya and a 5% interest acquired from Vodafone International Holdings B.V. through Vodafone Kenya Limited (VKL). The acquisition was completed on 30 June 2026.
The transaction was part of Vodacom’s strategy to increase its ownership of Safaricom, Kenya’s largest telecommunications operator, strengthening its position in East Africa’s telecommunications and financial services markets.
High Court judgment triggers legal challenge
On 15 September 2026, Kenya’s High Court delivered a judgment concerning a petition challenging aspects of the acquisition. The ruling prompted Vodacom and other affected parties to file a notice of appeal and seek a stay pending the determination of the challenge.
The Court of Appeal’s latest direction means that VKL remains the registered holder of the Safaricom shares acquired from the Kenyan government on 30 June 2026. The corresponding purchase consideration paid to the government must also be preserved pending the hearing of the appeal.
The court’s decision to fast-track the substantive appeal does not, in itself, resolve the underlying dispute or determine the final validity of the transaction.
Vodacom maintains confidence in the acquisition
Vodacom said it remains confident in the strategic rationale for the acquisition and will continue to update shareholders on material developments in the appeal process.
The outcome will determine the legal position of the government’s 15% stake sale and could have implications for Vodacom’s ownership structure in Safaricom, as well as the Kenyan government’s proceeds from the transaction.
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