KENYA · TELECOMS
Key Facts
- —The country Kenya is an East African democracy of more than 50 million people, led by President William Ruto. Its capital Nairobi is the region’s business hub.
- —What happened Vodacom, the South African mobile group, says its Safaricom stake stays at 55% while an appeal is heard. Business Daily reported it on Tuesday 20 October.
- —The court order Kenya’s Court of Appeal ordered on 13 October that shares and price stay as they are until the appeal is decided. The registrar next sees the case on 23 October.
- —The numbers Vodacom paid KES 34 (about US$0.26) a share. The government received KES 204.3 billion (about US$1.57 billion) for its 15% stake in Safaricom.
- —Who is Safaricom Safaricom is Kenya’s largest company and runs M-Pesa, the mobile money service used across East Africa. It has been listed on the Nairobi stock exchange since 2008.
- —What it means for you Vodafone, the British group that controls Vodacom, has American depositary receipts that trade on Nasdaq. Its control of Safaricom stays uncertain until the court decides.
- —Still open No hearing date for the main appeal has been published. The court’s full reasons for its 13 October order have not been released.
The Vodacom Safaricom stake stays at 55% while a fast-tracked appeal is heard, Business Daily in Kenya reported on Tuesday 20 October. South Africa’s Vodacom is fighting to keep its hold on Kenya’s biggest company.
For US investors, the Vodacom Safaricom stake matters because Vodacom’s parent, Vodafone, trades in New York. A final ruling against the deal would strip Vodacom of the majority control it completed on 30 June.
What Vodacom Told Its Shareholders
On Friday 16 October, Vodacom Group told investors that its subsidiary Vodafone Kenya remains the registered holder of the Safaricom shares. The JSE-listed company said the price paid to the Kenyan government must be preserved while the appeal is pending.
Vodacom said it is confident in the strategic reasoning for the purchase and will update shareholders on material developments. Its chief executive, Shameel Joosub, signed a memorandum of understanding with Kenya’s Treasury in Nairobi on 4 December 2025.
What the Court of Appeal Ordered on 13 October
Three judges, Kathurima M’Inoti, Luka Kimaru and Johnson Okello, heard the case in Nairobi on Tuesday 13 October. The order records that the parties agreed to fast-track the main appeal in the public interest.
It keeps the Safaricom shares and the purchase money as they are until the appeal is heard. The attorney general, who brought the request to suspend the judgment, was told to file the main appeal for priority hearing.
How the Deal Was Built
Vodacom bought 15% of Safaricom from the Kenyan government at KES 34 (about US$0.26) a share, plus a further stake from Vodafone. That lifted the Vodacom Safaricom stake to 55%, its first majority since the 2008 listing.
The government received KES 204.3 billion (about US$1.57 billion) for its shares. It also took KES 40.2 billion (about US$310 million) ahead of future dividends, at about KES 129.8 to the US dollar.
Why the High Court Voided the Sale
On Tuesday 15 September, three High Court judges in Nairobi declared the government’s sale of its 15% stake unconstitutional, null and void. They found too little public consultation and ordered the shares returned to the state.
The case was brought by the broadcaster Tony Gachoka and the economist Fredrick Ogola, with opposition leader Kalonzo Musyoka as their senior counsel. Vodacom and the National Treasury, Kenya’s finance ministry, both said they would appeal.
What a Loss Would Cost Vodacom
If the judgment stands, the Vodacom Safaricom stake would fall to about 40%, and Vodacom would lose majority control. The extra stake bought from Vodafone is not touched by the ruling.
The Kenyan government argued in court that undoing the sale would mean repaying foreign-currency inflows and unwinding entries at the stock depository. It also warned of damage to investor confidence and foreign-exchange reserves.
What It Means for US Readers
Vodafone is a British telecom group whose American depositary receipts trade on Nasdaq, so the Vodacom Safaricom stake reaches US portfolios. Safaricom also runs M-Pesa, a main channel for mobile payments and remittances in East Africa.
Investors in Kenyan shares and bonds are watching because Safaricom is the biggest company on the Nairobi exchange. The Rio Times covered the 13 October hearing and the High Court judgment.
What Is Not Known
The court has not published a date for the main appeal, only that the matter returns to its registrar on Friday 23 October for directions. Nobody has said how long a fast-tracked hearing and judgment will take.
The court’s full reasons for its 13 October order have not been released. It is also open how the shares and the money would move if the High Court judgment were upheld.
More: Kenya news in English, every day from The Rio Times.
Frequently Asked Questions
Does Vodacom still own 55% of Safaricom?
Yes, the Vodacom Safaricom stake is still 55%, according to Vodacom’s statement of 16 October and Business Daily on 20 October. Vodafone Kenya remains the registered holder of the shares while the appeal is heard.
Why did a Kenyan court cancel the sale?
On 15 September, the High Court found too little public consultation and declared the government’s sale of 15% unconstitutional. It ordered the shares returned to the state.
What happens next in the appeal?
The case goes back to the Court of Appeal’s registrar on Friday 23 October for directions. The parties agreed to fast-track the main appeal.
How much did Vodacom and Vodafone pay?
The Kenyan government received KES 204.3 billion (about US$1.57 billion) for its 15% stake at KES 34 (about US$0.26) a share. It also received KES 40.2 billion (about US$310 million) ahead of future dividends.
What does this mean for M-Pesa users?
Nothing changes in the service today, because Safaricom keeps operating as before. The dispute is about who owns the shares, not about the mobile money platform.
Sources: Business Daily (Kenya), 20 October 2026; TechCentral (South Africa), 16 October 2026; Business Day (South Africa), 16 October 2026; The Standard (Kenya), October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.