Vodacom Books R23 Billion Safaricom Accounting Gain as Kenyan Court Fight Continues
Vodacom has recorded a R23 billion accounting gain on its Safaricom stake, representing a material cross-border financial event for the South African operator. Live litigation in Kenyan courts introduces active legal risk alongside the balance sheet gain.
Safaricom Gain: booking a win you might have to give back
Vodacom's R23 billion gain is real on paper — but it exists precisely because accounting rules require revaluing the old 35% stake the moment you take control.
The problem is that a Kenyan court has already ruled that the 15% bought from the government was unconstitutional. If that ruling survives appeal, Vodacom drops from 55% to 40% and loses its majority — which is the very thing that triggered the accounting gain in the first place.
You can't book the prize for crossing the finish line if the race stewards are still deciding whether you ran the right course.
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- Vodacom books R23-billion Safaricom gain as court fight rages · techcentral.co.za · T2