(NAIROBI, KENYA) – South Africa’s Vodacom Group will appeal and seek a stay order to keep its majority ownership of Safaricom after Kenya’s High Court nullified its purchase of an extra 20% stake in the telecoms operator on 30th June 2026.
The court ruled on Tuesday that the National Treasury concealed key information about the sale of its 15% stake in Safaricom, including the fact that the deal gave Vodacom a controlling 55% holding in the Nairobi Securities Exchange-listed company.
Vodacom also bought a 5% stake in Safaricom from Vodafone Group at the same time, raising its ownership from 35%.
The government’s partial sale of its Safaricom stake had already drawn legal action, but the Attorney-General won an application at the Court of Appeal on 26th June to lift a freeze on the deal, allowing the transaction to close two business days later.
The multinational said it will file an application at the Court of Appeal following the High Court ruling.
“Subsequent to the Appeal Order, the High Court of Kenya provided a judgment on a petition against the acquisition, which judgment was handed down on September 15, 2026. Vodacom will review the judgment, and its implications,” the Midrand-based firm said in a market update on Tuesday.
“As interim steps, an appeal against the decision will be lodged with the Court of Appeal, as well as an application to stay the matter until an appeal is heard.”
The government has also said it will appeal the decision, but its attempt to persuade the court to suspend the judgment pending appeal was rejected.
Vodacom acquired the government’s shares through a block trade on the NSE on 30th June, the same day it bought Vodafone’s shares through its investment vehicle Vodafone Kenya Limited (VKL).
The High Court’s three-judge bench held that the deal was presented as a partial divestiture when it was in fact a takeover that gave Vodacom effective control of Safaricom.
The court declared the divestiture invalid, null and void, quashed all approvals tied to the transaction and ordered that the 15% stake be returned to the Government of Kenya on behalf of the people.
The court directed the parties, including the Attorney-General, Safaricom and Vodacom, to file a substantive application seeking a stay of the judgment.
It noted that under the arrangement, the South African multinational’s ownership of the Kenyan telco rose to 55% after it took full ownership of VKL, the vehicle through which it holds the shares.
The judges found that this critical information was not adequately disclosed to the public, the Cabinet or Parliament.
“A declaration is hereby made that the partial divestiture of the 15 percent of the Government of Kenya shares in a camouflage merger or acquisition and takeover of Safaricom PLC is in contravention of the Constitution and the law,” the court said.
“A declaration is hereby made that the partial divestiture of the 15 percent of the Government of Kenya shares in Safaricom PLC was marred with obscurities on the proposed buyer, misrepresentations and concealment of material information on the nature and effects of the partial divestiture in violation of the principles of integrity, transparency,” it added.
The court also raised concerns about national security, noting that Safaricom runs critical infrastructure, including election transmission systems, government payment platforms, mobile money services and stores the personal data of millions of Kenyans.
“In the circumstances, even with regulatory safeguards, there is no guarantee that would prevent foreign and external influence or interference with the governance systems, personal security and data,” the court said.
The judges added that any perception of external influence over election transmission systems could undermine public confidence in the democratic process. They held that transferring effective control of such infrastructure to a foreign entity without a prior national security assessment breached the government’s constitutional obligations.