Nairobi – Kenya’s Court of Appeal has agreed to fast-track proceedings challenging a High Court ruling that invalidated Vodacom’s multibillion-rand acquisition of a 15% stake in Safaricom, leaving the South African telecommunications group’s control of the company subject to an ongoing legal dispute.
According to BusinessTech, Vodacom confirmed on Friday, 16 October, that the appellate court had opted to accelerate the substantive appeal rather than determine its application for a stay of the earlier judgment.
“The Court decided not to determine the application but instead recorded to fast-track the substantive appeal,” Vodacom said in a statement to shareholders.
The group added that “the prevailing status quo in respect of the shares and purchase consideration shall be maintained pending the hearing of the appeal”.
Inadequate public consultation
The development follows a 15 September ruling by Kenya’s High Court declaring the government’s sale of a 15% stake in Safaricom to Vodacom invalid. The transaction, completed in June 2026, was valued at approximately R34.5 billion at the time, according to BusinessTech.
Business Day reported that the disputed sale involved the Kenyan government transferring its shares to Vodafone Kenya, a Vodacom subsidiary, for approximately US$1.6 billion.
The High Court raised concerns about inadequate public consultation, the disclosure of important transaction documents and the basis used to determine the shares’ valuation. The ruling ordered the government’s 15% stake to be restored to the state.
The transaction had increased Vodacom’s effective shareholding in Safaricom from approximately 40% to 55%, giving it majority control of Kenya’s largest telecommunications operator. The Kenyan government’s stake fell to 20%.
Long-term strategic partnership
According to Reuters, Kenya’s government has also vowed to challenge the ruling. Finance Minister John Mbadi said the government was confident the sale was lawful and would contest the judgment on appeal.
Vodacom has maintained that the acquisition supports its long-term growth strategy across Africa, particularly in telecommunications and digital financial services.
“Our long-term strategic partnership with Safaricom remains firmly intact,” a Vodacom spokesperson previously told MyBroadband, as quoted by BusinessTech.
The appeal’s outcome will determine the legal position of the disputed share transfer and could have significant implications for Vodacom’s ownership of Safaricom and the Kenyan government’s proceeds from the sale.
Vodacom said it remained confident in the strategic rationale for the acquisition and would update shareholders on material developments as the appeal progresses.
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Compiled by Betha Madhomu
