South African telecoms group Vodacom plans to appeal a Kenyan High Court ruling that ordered the cancellation of its $1.6 billion purchase of an additional 15% stake in Safaricom from the Kenyan government.
The court ruled on Tuesday that the government had failed to adequately involve the public in the sale and that the process involved the concealment of material information, according to a statement seen by TechMoran. It ordered the 15% stake to be returned to the government.
Vodacom said late Tuesday it would appeal to Kenya’s Court of Appeal and apply to the High Court to stay enforcement of the judgment pending the appeal. The transaction, announced in December 2025 and completed in June 2026, increased Vodacom’s effective interest in Safaricom to 55%, while reducing the Kenyan government’s stake to 20%.
The deal expanded Vodacom’s control of Safaricom, Kenya’s largest telecoms operator and the company behind the M-Pesa mobile-money platform. Safaricom is listed on the Nairobi Securities Exchange and is one of the most valuable companies in Kenya.
Vodacom has been a shareholder in Safaricom since 2017, when it acquired Vodafone Group’s indirect interest in the Kenyan operator as part of a wider restructuring of Vodafone’s African assets. The transaction made Vodacom Safaricom’s largest shareholder alongside the Kenyan government.
The latest purchase followed years of changes in Safaricom’s ownership structure. Before the transaction, the Kenyan government held a 35% stake, while Vodacom had an effective 40% interest. The additional 15% sale was therefore significant for both Vodacom’s control of the business and the government’s ability to raise money from the company.
The transaction was also part of President William Ruto’s administration’s broader efforts to raise funds through the sale of state assets as Kenya faces large debt-servicing obligations.
The government has argued that asset sales can help strengthen public finances, while the Safaricom transaction has faced legal scrutiny over whether the state followed the constitutional and statutory requirements governing the disposal of public assets.
Safaricom said it was reviewing the High Court judgment and assessing its implications.
The ruling puts one of Kenya’s largest corporate transactions under renewed legal scrutiny. The final ownership structure will depend on the outcome of Vodacom’s appeal and any further court orders concerning the transfer of the shares.