Vodacom retained its registered controlling interest in Safaricom while Kenya’s Court of Appeal moved the underlying dispute onto an expedited track. A 16 October stock-exchange filing said the court did not determine Vodacom’s stay application at its 13 October sitting. Instead, the court preserved the prevailing position over both the shares and the purchase payment pending the substantive appeal. Vodafone Kenya therefore remained the registered holder of the shares acquired from the Kenyan government.
The development followed a 15 September High Court judgement that challenged the government’s disposal of part of its Safaricom stake. Vodacom had completed the wider acquisition on 30 June, raising its effective interest from about 35% to roughly 55%. The transaction included 15% bought from the Kenyan government and an effective further 5% acquired from Vodafone Group. Vodacom valued the combined purchase at $2.1 billion when it announced completion.
OWNERSHIP STAYS IN PLACE
The exchange filing said the interim order left the acquired government shares registered to Vodafone Kenya. It also required the corresponding consideration paid to the government to be preserved while the appeal proceeds. That clarification matters because the appellate court did not rule on the stay request itself. The operative arrangement instead holds the disputed assets and payment in their current positions.
Business Daily reported that the government’s 15% block was sold for KSh204.3 billion, while the additional 5% interest from Vodafone cost KSh68.1 billion. The publication said Vodacom expected to keep its overall controlling position during the appeal. Separate South African reporting also described the order as maintaining Vodacom’s control while the substantive case is heard. The legal outcome remains unresolved despite the temporary continuity in registration.
APPEAL SETS THE NEXT MILESTONE
Safaricom is central to Vodacom’s East African strategy and includes the M-PESA mobile-money business. The ownership dispute therefore affects both telecoms consolidation and the governance of a major financial-services platform. Vodacom said it remained confident in the strategic rationale for the investment. The company also said it would update shareholders when material developments occur.
The next reportable milestone will be a hearing date, judgement or settlement in the fast-tracked substantive appeal. Until then, the filing indicates that Vodafone Kenya stays on the register and the government’s payment remains preserved. Any final treatment of the shares will depend on the appellate process. Investors will also watch whether the litigation changes Vodacom’s consolidation of Safaricom or its stated financial-services strategy.