The fight over the Vodacom Safaricom stake is back in a Nairobi courtroom on Thursday, 23 October. Kenya's Court of Appeal has told the parties to return to its registrar that day for directions on a fast-tracked appeal, according to TechCentral. The outcome will decide whether South Africa's Vodacom keeps majority control of Safaricom, the operator behind M-Pesa, or drops back to a minority holding.
Vodacom has kept the shares for now. But the company itself has warned investors not to read too much into that.
How the Vodacom Safaricom stake deal was built
The deal was announced in December and closed on 30 June 2026. TechCentral and Techpoint Africa report the terms as follows:
- Vodacom bought 15% of Safaricom from the Kenyan government at KSh34 a share.
- The government received KSh204.3 billion, about $1.6 billion, for those shares.
- It also received KSh40.2 billion in advance against future dividends on the stake it still holds.
- Vodacom took an effective 5% more from its parent, Vodafone International.
- Together, the two purchases lifted Vodacom's effective stake from about 35% to 55%.
The shares are registered to Vodafone Kenya, the holding entity in the group.
Three court rulings in four months
The deal has been in court almost from the start.
March: frozen
A constitutional petition brought by broadcaster Tony Gachoka, academic Frederick Ogola and others froze the transaction in March, TechCentral reports.
June: freeze lifted
The Court of Appeal lifted that freeze on 26 June. Vodacom completed the purchase four days later.
September: declared void
On 15 September, Kenya's High Court ruled the government's sale of the 15% stake unconstitutional, null and void. According to Techpoint Africa, the judges found the public had not been properly consulted because key details of the transaction were not disclosed. The ruling also raised concerns about pricing and competition. The court ordered the shares returned to the state.
Both Vodacom and Kenya's Treasury said they would appeal.
What the 13 October order does and does not do
Kenya's Attorney-General asked the Court of Appeal to suspend the High Court judgment while the appeal runs. A bench of Justices Kathurima M'Inoti, Luka Kimaru and Johnson Okello did not grant a suspension as such. Instead, with the parties' agreement, it ordered that the main appeal be "fast-tracked in the public interest" and that the status quo on the shares and the purchase money be kept until the appeal is heard.
In practice that means:
- Vodafone Kenya stays the registered holder of the Safaricom shares bought on 30 June.
- The money paid to the government "is to be preserved, pending the hearing of the appeal," in Vodacom's words.
- The September judgment still stands. It has not been overturned.
- No date for the full appeal hearing has been set. The 23 October date is a registrar's mention for directions.
Vodacom said in its 16 October update that "this is not a final victory for Vodacom," while adding that it "remains confident in the strategic rationale for the acquisition."
What happens if Vodacom loses
If the High Court ruling survives the appeal, the 15% bought from the government would go back to the state. Vodacom's effective stake would fall from 55% to about 40%, and it would lose majority control. The 5% bought from Vodafone International is not touched by the ruling.
That matters beyond the share register. Techpoint Africa notes that majority control lets Vodacom consolidate Safaricom in its accounts, which is central to its East African growth plan. Safaricom is Kenya's largest telecoms operator, and M-Pesa is the country's main mobile money network.
For the government, a loss would raise awkward questions about KSh204.3 billion already received and a further KSh40.2 billion paid against future dividends. The court has ordered that money preserved, which suggests the judges expect a possible unwinding to be practical.
Why the public-consultation finding matters
The High Court did not say the price was wrong or that Vodacom acted unlawfully. Its main finding was about process: Kenyans were not given enough information to take part in a decision about a public asset.
That point travels. Several African governments are selling or diluting stakes in telecoms and utilities to raise cash. If the Court of Appeal upholds the consultation standard, future sales in Kenya will need fuller public disclosure before signing, and buyers will price that legal risk in.
What to watch next
- 23 October: the registrar sets timelines for filing and, possibly, a hearing date.
- The substantive appeal hearing, which the court has said should move quickly.
- Any statement from Safaricom's board on governance while ownership is contested.
- Vodacom's half-year results, where the accounting treatment of Safaricom will show how the group reads the risk.
Ownership of Kenya's dominant payments network is in play at the same time as rivals are moving on M-Pesa's turf. We covered one example earlier this week: Airtel Money's Global Pay card heading to Kenya to take on M-Pesa GlobalPay.
Afrotech Horizon will update this story after the 23 October mention.
