South Africa’s Vodacom Group will appeal a Kenyan High Court ruling that declared the government’s KSh 204.3 billion sale of a 15% stake in Safaricom PLC null and void. The company will also seek a stay of execution pending the appeal.
The High Court on 15 September 2026 ruled that the transaction, completed on 30 June 2026, violated the Constitution and ordered the 15% shareholding restored to the State. The decision puts Vodacom’s 55% controlling position in Safaricom in question.
What Vodacom and the Government Said
In a statement to the Johannesburg Stock Exchange, Vodacom said it would lodge an appeal with Kenya’s Court of Appeal and apply for a stay of execution pending the appeal.
Treasury Cabinet Secretary John Mbadi also confirmed that the government will appeal. Speaking in Kisumu on 16 September, Mbadi said the National Treasury is studying the full judgment and will pursue the appeal vigorously through the appropriate legal channels.
“The National Treasury will pursue this appeal vigorously and provide further updates as the matter progresses through the courts,” Mbadi said.
Key Facts of the Transaction
| Item | Details |
|---|---|
| Transaction value | KSh 204.3 billion ($1.6 billion) |
| Stake sold | 15% of Safaricom (approx. 6.01 billion shares at KSh 34) |
| Completion date | 30 June 2026 |
| Vodacom stake after deal | Approx. 55% (majority control) |
| Government stake after deal | 20% |
| High Court ruling | 15 September 2026 – sale declared null and void; shares ordered restored |
The transaction also included a KSh 40.2 billion upfront payment linked to future dividends on the government’s remaining 20% Safaricom stake.
The High Court found that the government failed to conduct adequate public participation, concealed material information about the true nature of the deal, and effectively facilitated a corporate takeover rather than a simple partial divestiture.
Impact on Safaricom
Safaricom remains the most heavily weighted stock on the Nairobi Securities Exchange. The company closed at KSh 36.50 on 15 September 2026, according to market data.
The court ruling introduces short-term uncertainty over the ownership structure. If the judgment ultimately stands and the 15% transfer is reversed, the government’s direct stake would return to 35%, while Vodacom’s effective stake would fall to about 40%.
The nullification also affects the KSh 40.2 billion dividend-related arrangement, complicating near-term cash-flow modelling for some investors.
Why the Ruling Matters
The decision is a major setback for the government’s privatisation programme and its plans to raise capital for the National Infrastructure Fund. Proceeds from the Safaricom sale had been earmarked for infrastructure projects and budget support amid heavy debt-service pressures.
The Court of Appeal will now determine whether the transaction can be permanently reversed or allowed to stand.
Related:High Court Declares Safaricom Stake Sale to Vodacom Null and Void
Frequently Asked Questions
Will Vodacom appeal the Safaricom ruling?
Yes. Vodacom has confirmed it will appeal to the Court of Appeal and seek a stay of execution pending the appeal.
Is the government also appealing?
Yes. Treasury CS John Mbadi has stated that the National Treasury will challenge the High Court decision.
What did the High Court order?
It declared the sale null and void and ordered the 15% stake restored to the Government of Kenya.
When was the deal completed?
30 June 2026, after the Court of Appeal earlier lifted conservatory orders.
How much was the transaction worth?
KSh 204.3 billion for the 15% government stake, plus a KSh 40.2 billion upfront payment linked to future dividends on the remaining 20% stake.
What is Safaricom’s latest share price?
The stock closed at KSh 36.50 on 15 September 2026.
What happens next?
Both Vodacom and the government will file appeals. The Court of Appeal will decide whether to stay the High Court orders pending the full hearing.
Bottom Line
Vodacom and the Kenyan government are both moving to the Court of Appeal after the High Court declared the KSh 204.3 billion Safaricom stake sale null and void and ordered the 15% shareholding returned to the State.
The ruling, delivered on 15 September 2026, has introduced fresh uncertainty over ownership of East Africa’s largest telecoms company and the government’s privatisation plans. Investors will watch closely for any stay of execution while Safaricom’s underlying business remains solid.
Sources:
Reuters – Vodacom to appeal Kenya court ruling (16 September 2026);
The Eastleigh Voice;
The Star – Mbadi: Government to appeal;
Daily Nation;