The Kenyan government and Vodacom Group are challenging a court ruling that could overturn the telecommunications company’s acquisition of an additional stake in Safaricom, Kenya’s largest telecommunications company. The acquisition was recently completed by Vodacom in June 2026.
Kenya’s High Court ruled on September 15 this year (2026) that the government’s sale of a 15% stake in Safaricom to Vodacom was invalid and ordered the shares to be returned to the state. The transaction, which is worth about 204 billion Kenyan shillings ($1.6 billion), had been completed in June this year.
The court’s decision was made after several concerns were raised about the initial conduct of the sale. A three-judge bench found that the process did not provide adequate public participation and involved the withholding of material information, according to reports on the judgement. The ruling therefore threatens a transaction that has already increased Vodacom’s effective interest in Safaricom to 55%.
Vodacom has stated that it will appeal the decision at Kenya’s Court of Appeal and seek an order temporarily preventing the judgement from being implemented while the appeal is considered. The Kenyan government has also indicated that it will challenge the ruling.
The dispute clearly shows the significant financial implications that impact both parties. The government’s efforts of a stake sale were in aim to raise funds through the disposal of state assets, as Kenya manages substantial financial obligations. Vodacom, meanwhile, had already incorporated the additional Safaricom interest into its ownership structure following completion of the transaction.
Safaricom, which provides mobile telecommunications, internet and mobile-money services to millions of customers, has said it is reviewing the judgement and its implications.
The appeals process will now end up being the main driver to determine whether the transaction can stand or whether the 15% stake must ultimately return to government ownership. Until the legal challenge is resolved, the future structure of ownership at one of Kenya’s most important telecommunications companies remains uncertain.
