Vodacom Group will keep the Safaricom shares that gave it control of the Kenyan operator until a fast-tracked appeal is heard, according to a court order seen by TechCentral.
The order, issued by Kenya’s court of appeal in Nairobi on 13 October, records that “the parties agreed that the hearing of the substantive appeal be fast-tracked in the public interest”. It directs that “the prevailing status quo in respect of the shares and purchase consideration shall be maintained pending the hearing of the appeal”.
The matter will be mentioned before the court’s registrar on 23 October for directions. The application to suspend the high court’s judgment was brought by Kenya’s attorney-general, whose counsel was directed to file the substantive appeal so that it can be heard on a priority basis. The bench comprised justices Kathurima M’Inoti, Luka Kimaru and Johnson Okello.
In a statement to investors on Friday, JSE-listed Vodacom said its subsidiary Vodafone Kenya remains “the registered holder of the Safaricom shares” it bought from the Kenyan government on 30 June, and that the purchase price paid to the government “is to be preserved, pending the hearing of the appeal”.
Vodacom said it “remains confident in the strategic rationale for the acquisition”.
How the deal unravelled
The transaction, announced in December, saw Vodacom pay KSh34/share for 15% of Safaricom from the Kenyan government and an effective 5% from its parent, Vodafone. That lifted its stake from about 35% to 55%, giving it majority control of Kenya’s biggest telecoms operator for the first time since Safaricom listed in 2008. The government received KSh204.3-billion for its shares, plus KSh40.2-billion paid in advance of future dividends.
A constitutional challenge by broadcaster Tony Gachoka, academic Frederick Ogola and others froze the deal in March. Gachoka is represented by opposition leader Kalonzo Musyoka, a senior counsel. The court of appeal lifted that freeze on 26 June, and Vodacom completed the acquisition on 30 June.
On 15 September, the high court declared the sale “unconstitutional, null and void”, finding that the government had not consulted the public adequately, and ordered the shares restored to the state. Kenya’s treasury and Vodacom both said they would appeal.
If the judgment stands, Vodacom’s stake would fall to about 40% and it would lose its majority in Safaricom. The 5% it bought from Vodafone is not affected by the ruling. – © 2026 NewsCentral Media
