The Vodacom Safaricom appeal has been fast-tracked by Kenya’s Court of Appeal, and Vodacom keeps the Safaricom shares it bought from the Kenyan government while the case is heard. JSE-listed Vodacom told investors on Friday that its subsidiary Vodafone Kenya “remains the registered holder of the Safaricom shares” acquired on 30 June, according to TechCentral.
What the Court of Appeal ordered
The Nairobi court heard an application to suspend the High Court judgment on 13 October. TechCentral, which saw a copy of the order, reports that the bench of justices Kathurima M’Inoti, Luka Kimaru and Johnson Okello did not decide the stay. It recorded that “the parties agreed that the hearing of the substantive appeal be fast-tracked in the public interest.”
The order also says “the prevailing status quo in respect of the shares and purchase consideration shall be maintained.” In practice, Vodacom keeps the shares and the Kenyan government keeps the purchase price until the appeal is decided. Kenya’s attorney-general brought the stay application and was directed to file the substantive appeal for priority hearing. The matter returns to the court’s registrar on 23 October for directions, so no hearing date has been set in the reports we reviewed.
Vodacom’s statement, which is a company position and not an independent finding, said the purchase price “is to be preserved, pending the hearing of the appeal” and that it “remains confident in the strategic rationale for the acquisition.” BusinessTech adds that Vodacom described its “long-term strategic partnership with Safaricom” as “firmly intact” and said it will keep shareholders updated on the appeal.
The size of the deal
The headline on the BusinessTech report reads “R34 million”, but the body of that report and other outlets point to billions. Daily Investor, carrying a Bloomberg report, puts the deal at about $1.9 billion, or R34.52 billion, for a 15% stake in Safaricom. Business Day instead gives R36 billion, or $2.1 billion, for the whole transaction, which also includes a portion bought from Vodafone. The two figures measure slightly different things and are converted at different times, so the rand total depends on the outlet.
The Kenyan shilling figures are firmer. TechCentral reports that Vodacom paid KSh34 per share, and that the Kenyan government received KSh204.3 billion for its shares plus KSh40.2 billion paid in advance of future dividends. Daily Investor describes the latter as raised by securitising future dividends.
How the stake is structured
Vodacom bought 15% of Safaricom from the Kenyan government and an effective 5% from Vodafone, its parent. Business Day says the Vodafone portion was worth $500 million and came through Vodacom’s purchase of 12.5% of Vodafone Kenya, giving it 100% of that company. The government portion was worth $1.6 billion.
The result, according to TechCentral, lifted Vodacom’s holding from about 35% to 55%, which gave it majority control. Business Day describes the earlier holding as an effective 20% interest, so the starting figure differs between outlets. Both agree the new holding is 55%.
If the High Court judgment stands, TechCentral says Vodacom’s stake would fall to about 40% and it would lose majority control. The 5% bought from Vodafone is not affected by the ruling.
How the case reached this point
The deal was announced in December 2025. A constitutional challenge brought by Tony Gachoka and others froze it in March, and the Court of Appeal lifted that freeze on 26 June, which allowed Vodacom to complete the purchase on 30 June, per TechCentral.
On 15 September the High Court declared the sale “unconstitutional, null and void” and ordered the shares returned to the state. TechCentral says the court found the government had not consulted the public adequately. Business Day adds that the court found the pricing framework for Safaricom’s valuation arbitrary and that competition implications had not been considered. Daily Investor, citing Bloomberg, reports that the court found critical documents were not disclosed for public scrutiny and that there was no basis for the valuation of the shares. Kenya’s treasury and Vodacom both said they would appeal.
What is still open
The fast-track order does not settle who owns the 15% stake. It only freezes the position until the appeal is heard. The reports reviewed give no hearing date and no indication of when judgment might follow. Vodacom did not say what financial effect a return of the shares to the state would have, and the sources do not report one.
For Vodacom shareholders, the registrar directions on 23 October are the next dated step. Until then, the company holds the shares, the government holds the money, and the High Court ruling that the sale was void remains under appeal. Our Markets & Finance section will carry the next development once a hearing date is set.
