By the 254.ke Newsroom
The Court of Appeal has declined to suspend the High Court judgment that voided the sale of a 15 per cent Safaricom stake to Vodacom’s Kenyan unit, so the September 15 ruling stays in force while the government’s appeal is pending. As of October 21, 2026, no appeal hearing date has been reported, and outlets differ on what that means for Vodacom’s holding in practice.
What did the Court of Appeal decide on the stay?
On October 13, a three-judge bench of Justices Luka Kimaru, Johnson Okello and Kathurima M’Inoti rejected the government’s application to stay the High Court judgment, according to Citizen Digital. The bench found the application had not met the legal threshold for the orders sought. Court Helicopter reported the same outcome on October 14.
The picture is not fully settled. The Rio Times, citing Business Daily, noted that one report said the court heard the applications and did not decide them, while fast-tracking the main appeal. Neither Citizen Digital nor Court Helicopter reported a separate ruling on a stay application by Vodacom, and neither carried a Vodacom or Treasury statement. The court order itself had not been published in the reports reviewed.
What did the High Court rule on September 15?
A three-judge High Court bench declared the sale of the 15 per cent stake unconstitutional, null and void, found public participation inadequate, and ordered the shares to revert to the Government of Kenya. The Kenya Times quoted the judgment as finding that the government engaged in “unexplained obscurity” about the identity of the buyer and concealed material information.
The stake was about 6.01 billion ordinary shares sold for roughly Sh204.3 billion. For background on the ruling, see our earlier explainer, Safaricom-Vodacom stake ruling: what it means for you.
Key figures at a glance
- Stake sold: 15 per cent of Safaricom, about 6.01 billion shares
- Sale price: about Sh204.3 billion, plus Sh40.2 billion paid in lieu of future dividends, per the government’s affidavits
- Buyer: Vodafone Kenya Limited, a Vodacom Group subsidiary
- High Court judgment: September 15, 2026
- Court of Appeal stay hearing: October 13, 2026
What does the government argue?
In affidavits sworn on September 17, Attorney General Dorcas Oduor and Treasury Cabinet Secretary John Mbadi argued that the Sh204.3 billion proceeds are non-refundable and that the shares had already been transferred. They said restoring the shares without a refund would cause financial prejudice. The Rio Times reported that the government also warned of effects on fiscal planning, investor confidence and the foreign-exchange position.
Does Vodacom keep its 55 per cent stake?
Business Daily reported on October 20 that Vodacom says it will retain its controlling 55 per cent stake in Safaricom while the appeal continues. That article is behind a paywall and its body could not be reviewed in full, so the reasoning is not independently confirmed here. The reporting on the stay refusal points in a different direction, because the order restoring the stake to the state has not been suspended. The two positions have not been reconciled in the coverage reviewed.
Business Daily also describes the nullified deal as an extra 20 per cent stake, while Citizen Digital and Court Helicopter describe a 15 per cent stake sold by the government. The Rio Times reports that Vodacom’s effective 20 per cent purchase combined the government’s 15 per cent with a 5 per cent block from Vodafone. Vodacom told its shareholders it remains confident in the deal’s rationale, per Business Daily as relayed by the Rio Times.
What does this mean for Safaricom shareholders?
Safaricom shares trade on the Nairobi Securities Exchange, and the dispute concerns who owns a block of them, not how the telco operates day to day. Customers’ M-PESA and mobile services are not affected by the ruling. Investors can follow price moves in our coverage of the NSE record high and the shilling and forex reserves, since the government has tied the sale proceeds to its foreign-currency position.
Frequently asked questions
Is the Safaricom stake sale cancelled?
The High Court declared it null and void on September 15, and the Court of Appeal has refused to suspend that judgment. The government’s appeal on the merits is still pending.
Will the government have to refund Vodacom?
None of the reports reviewed say whether a refund has been ordered. The government says the proceeds are non-refundable.
When will the appeal be heard?
No hearing date has been reported. Business Daily, as relayed by the Rio Times, said the appeal was fast-tracked.
Does this affect M-PESA?
No. The case is about ownership of shares, not Safaricom’s services.
Court filings are published through the Kenya Law judgments database.
Reporting based on Citizen Digital (Oct 13), Court Helicopter (Oct 14), Eastleigh Voice (Sept 16), the Kenya Times (Sept 15), the Rio Times (Oct 13-16) and Business Daily (Oct 20, standfirst only).
