Kenyan appeals court clears path for Vodacom’s Safaricom stake purchase

Details: Manny Pham; Category: Operators; 29 June 2026; 480 views

Kenya’s Court of Appeal has lifted an injunction blocking the government’s planned sale of a 15% stake in Safaricom to South Africa’s Vodacom, reviving a transaction valued at KES204.3 billion (US$1.6 billion), reported to Bloomberg.

The ruling overturns a previous High Court order that had temporarily halted the deal following legal challenges over the government’s decision to dispose of part of its holding in the country’s largest mobile operator. The Treasury argued that the delay risked undermining investor confidence and disrupting a strategically important transaction.

The proposed acquisition forms part of the Kenyan government’s efforts to raise funds for infrastructure projects and help ease budgetary pressures. Once completed, the deal would increase Vodacom’s stake in Safaricom to around 55%, while reducing the Kenyan state’s shareholding to 20%, strengthening the South African operator’s control of East Africa’s largest telecoms provider.

The transaction had been frozen since March after petitioners challenged its legality and transparency, prompting the High Court to preserve the status quo while the constitutional case proceeded. The Court of Appeal has now ruled that the sale may continue while the broader legal challenge remains before the courts.