Vodacom Group expects to book a once-off gain of R23.2bn in its interim results, even though a Kenyan court appeal could still undo part of the deal that produced it. In a trading statement published on SENS on 28 October 2026, the JSE-listed telecoms group said the gain arises from the “remeasurement of a previously held associate interest in Safaricom”, and that it will lift earnings per share sharply for the six months to 30 September 2026.
What Vodacom told shareholders
According to the Vodacom trading statement, earnings per share (EPS) for the half-year are expected to rise by between 272% and 279% against the 472 cents reported a year earlier. That puts EPS in a range of 1 756 cents to 1 789 cents. Vodacom describes the R23.2bn, equal to 1 199 cents per share, as a tax-neutral and non-recurring fair value gain.
The gain does not touch the profit measure the JSE uses to judge trading performance. Vodacom says the gain “did not impact headline earnings” and therefore did not affect headline earnings per share (HEPS). On that measure the group expects growth of between 22% and 27% from the 467 cents reported in the prior period, which translates to a range of 570 cents to 593 cents. Vodacom adds that it expects the interim results to be consistent with its medium-term growth ambitions.
For investors, the headline EPS jump is an accounting effect of the Safaricom deal rather than cash earned, so the HEPS range is the figure that reflects trading performance. The statement does not say how much of the HEPS growth comes from consolidating Safaricom’s results from July onward, according to TechCentral.
Vodacom is required to publish a trading statement once it is reasonably certain that results will differ by at least 20% from the prior corresponding period, under paragraph 6.26 of the JSE Listings Requirements. The figures are not yet audited: the statement says the underlying financial information has not been reviewed or reported on by the group’s external auditors. The full results are expected on SENS on or about 10 November 2026.
Why a gain appears when control is gained
As TechCentral explains, a company that takes control of a business in which it already holds a stake must revalue that earlier stake at fair value and book any difference from its carrying value as a gain or loss. TechCentral reports that Vodacom held about 35% of Safaricom before it completed the acquisition of a further 20% on 30 June: 15% from the Kenyan government and an effective 5% from its parent, Vodafone Group. That took it to 55% and made Safaricom a subsidiary.
The starting stake is reported differently elsewhere. MyBroadband says Vodacom lifted its shareholding to about 55% from almost 40%. Vodacom’s trading statement does not state the percentage, and both outlets agree on the end point of 55%.
The court fight behind the numbers
The trading statement does not mention the litigation, but the gain sits on a deal that remains contested. In an earlier SENS update dated 16 October, Vodacom said the High Court of Kenya delivered a judgment on 15 September 2026 on a petition challenging aspects of the acquisition, and that Vodacom and other affected parties filed a notice of appeal and applied for a stay pending the appeal. TechCentral reports that the High Court declared the government’s sale of its 15% stake “unconstitutional, null and void” and ordered the shares restored to the state.
On 13 October the Court of Appeal in Nairobi decided not to determine the stay application and instead recorded that the substantive appeal would be fast-tracked. Vodacom’s SENS update says the prevailing status quo on the shares and the purchase consideration is to be maintained until the appeal is heard. In practice, Vodafone Kenya Limited remains the registered holder of the shares acquired from the Kenyan government on 30 June, and the purchase price paid to the government is to be preserved. Vodacom says it remains confident in the strategic rationale for the acquisition and will update shareholders on material developments.
We covered the earlier stages in our reports on the Kenyan High Court ruling on the 15% stake and on the fast-tracked appeal and Vodacom keeping its shares.
What is at stake for Vodacom and its investors
TechCentral reports that if the High Court judgment stands, Vodacom’s stake would fall to about 40% and it would lose its majority. The 5% it bought from Vodafone is not affected by the ruling. That is the reported consequence, not a forecast by Vodacom, which has not given a figure for how the interim accounts would change if the judgment were upheld. The trading statement does not say whether the R23.2bn gain would need to be revisited in that case.
MyBroadband says Vodacom offered 34 Kenyan shillings a share for 8.01 billion shares, valuing the transaction at R34.52bn at the time it was announced in December. Daily Investor recalls that the group’s FY26 customer base grew 12.3% to 237.3 million, revenue rose 10.1% to R167.7bn, EBITDA rose 12.8% to R62.6bn and HEPS rose 23% to 1 053 cents. Those are last financial year’s figures, reported earlier, not part of this trading statement.
The full interim results are due on or about 10 November. No hearing date for the Kenyan appeal has been given in the sources we reviewed. More on the sector is in our Tech & Telco section.
