Safaricom Stake Appeal Fast-Tracked: Court of Appeal Holds Status Quo Without Ruling on StaySafaricom Stake Appeal Fast-Tracked: Court of Appeal Holds Status Quo Without Ruling on Stay
Key Highlights
- The Court of Appeal on 13 October heard Vodacom's stay application but did not decide it, recording instead that the substantive appeal against the 15 September High Court judgment will be fast-tracked.
- Vodacom says the status quo on the Safaricom shares and the purchase consideration will be maintained until the appeal is heard, with Vodafone Kenya remaining the registered holder of the stake.
- The sale of about 6.01 billion shares for roughly KSh 204.3B ($1.57B) was completed on 30 June 2026, and no hearing date for the appeal has been reported.
The Court of Appeal has agreed to fast-track the appeal against the High Court judgment that voided the sale of the government's 15% Safaricom stake, but it has not yet decided whether the judgment should be suspended.
The court heard Vodacom's application for a stay on 13 October and, instead of ruling, recorded that the substantive appeal would be expedited, according to Vodacom's announcement of 16 October. The distinction matters because the status quo on the shares and the purchase money is to be preserved until the appeal is heard, which leaves ownership of the stake unresolved rather than settled either way.
What the Court of Appeal did
Vodacom says the court "recorded to fast-track the substantive appeal" and that the status quo on the shares and the consideration "shall be maintained pending the hearing of the appeal". Vodafone Kenya Limited remains the registered holder of the Safaricom shares it bought from the government, and the consideration paid to the government is to be preserved.
No hearing date has been reported. Vodacom says it remains confident in the strategic rationale for the acquisition and will update shareholders on material developments. Mwenendo's earlier report on 15 October described the court as having refused the applications; Vodacom's own statement shows the stay application was not decided, and this article corrects that account.
The deal under appeal
The transaction covered 6,009,814,200 ordinary shares, bought by Vodafone Kenya Limited, a subsidiary of the Vodacom group, and was completed on 30 June 2026, according to Vodacom. The price was about KSh 204.3B ($1.57B). The buyer also agreed to pay about KSh 40.17B ($309M) in lieu of future dividends on the shares the government retains.
A three-judge High Court bench of Francis Gikonyo, Roselyn Aburili and Teresia Wanjiku Ouya declared the divestiture unconstitutional, invalid, null and void on 15 September. Mwenendo earlier reported on how the High Court ordered the stake back to the State.
Why reversal is not simple
The government has told the court that restoring the stake would require unwinding entries already settled at the Central Depository and Settlement Corporation and obtaining cross-border regulatory approvals. It also warned that the orders could require repaying or withdrawing a large capital inflow, and that they affect third parties, including investors holding publicly traded Safaricom shares.
As Mwenendo earlier reported, Safaricom reviewed the first judgment and said the transaction had been finalised in June. The company's investor communications remain the place to watch for any statement on the share register.
What the appeal will test
The State says the appeal raises questions about Section 87A of the Public Finance Management Act, the role of Parliament in approving the sale, and the quashing of regulatory approvals. The Judiciary of Kenya is the place to find the cause list once a date is set.
For investors, the practical result is a holding pattern. Share prices and the register will react to each step, and Mwenendo's weekly market coverage showed foreign investors net selling KSh 737M of shares last week, a reminder that sentiment is already fragile. Other planned state divestitures will be read against this case.
Correction, 17 October 2026: Headline and body said the Court of Appeal refused the stay. Vodacom's 16 October announcement says the court heard the stay application on 13 October, did not decide it, fast-tracked the appeal and kept the status quo. Completion date corrected to 30 June 2026 per Vodacom; unsupported quote removed.
In Summary
- Who asked for the ruling to be suspended?
- The government, through the Attorney General, and Vodacom, whose subsidiary Vodafone Kenya bought the stake. Petitioners led by Tony Gachoka opposed.
- What did the Court of Appeal decide?
- It rejected the applications to suspend the High Court judgment that declared the sale of the 15% Safaricom stake unconstitutional, null and void.
- When were the sale and the High Court ruling?
- The sale was completed on 6 July 2026; the High Court judgment was delivered on 15 September.
- Where does the dispute stand now?
- The High Court orders stay in force while the main appeal waits for a hearing date, which has not been reported.
- Why does the State resist reversal?
- It says reversal would mean unwinding settled Central Depository entries, obtaining cross-border approvals and possibly repaying a large capital inflow.
- How much was the sale worth?
- About KSh 204.3B ($1.57B) for 6,009,814,200 shares, plus about KSh 40.17B ($309M) in lieu of future dividends.