Vodacom Group will retain its 55 percent stake in Safaricom, Kenya’s largest telecommunications operator, pending a fast-tracked appeal against a High Court judgment that declared the government’s share sale unconstitutional.
Kenya’s Court of Appeal, in an order issued on October 13, directed that the existing position regarding the shares and purchase consideration be maintained until the appeal is heard. The matter will return before the court’s registrar on October 23 for directions.
In a statement to investors on Friday, Vodacom said its subsidiary, Vodafone Kenya, remained the registered holder of the shares acquired from the government on June 30, adding that the purchase consideration would be preserved pending the appeal.
The dispute centres on a transaction in which Vodacom paid KSh34 per share for a 15 percent stake held by the Kenyan government and an effective five percent stake held by its parent, Vodafone. The purchases increased Vodacom’s interest from approximately 35 percent to 55 percent, giving it majority control of Safaricom.
The Kenyan government received KSh204.3 billion for its shares, alongside KSh40.2 billion paid in advance of future dividends.
On September 15, Kenya’s High Court declared the government’s sale “unconstitutional, null and void”, ruling that public consultation had been inadequate and ordering the shares restored to the state. Both the government’s National Treasury and Vodacom said they would appeal.
Read also: Vodacom ends high-dividend era as Safaricom deal fuels $300bn Africa growth push
The latest order preserves the transaction’s existing position without resolving the constitutional challenge. If the High Court judgment stands, Vodacom’s stake would fall to approximately 40 percent, stripping it of majority control. The separate five percent stake acquired from Vodafone is unaffected by the ruling.
The appeal has implications for Kenya’s privatisation process and investor confidence in major state asset sales, particularly where public participation is contested.
The court has directed the Attorney-General to file the substantive appeal for priority hearing. Vodacom said it remained confident in the strategic rationale for the acquisition.
Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.
