Safaricom Ordered to Pay Businessman Ksh1.4 Billion Over Mobile Wallet Technology Dispute
Safaricom CEO Peter Ndegwa. [Photo/Safaricom]
Safaricom PLC has been ordered by the High Court to compensate a businessman with Ksh1.4 billion after the court found that the telecommunications company infringed on the MTIN Mobile Wallet USSD application.
In the ruling, the court said the award was intended to compensate the petitioner for negligence and for Safaricom’s continued use of the technology at the center of the dispute.
The judgment also directed the telco to pay royalties equivalent to 0.5 per cent of M-Pesa revenue for every financial year beginning March 31, 2025, for as long as the service or any related platform continues operating.
However, the court declined to grant a permanent injunction that would have stopped Safaricom from using the service, noting that continued royalty payments offered a more practical remedy.
In its observations, the court emphasized that innovation can emerge outside large corporations and cautioned companies against improperly adopting ideas presented by external innovators.
The judge stated that corporations must recognise that “innovation does not only originate from corporate boardrooms” and warned that where proposals are rejected, firms must ensure any products later developed internally are fully independent.
The court also criticised Safaricom over its handling of the case, faulting the company for failing to provide key documents during the proceedings. According to the ruling, the company’s conduct did not meet the standards expected of a market leader.
Additionally, the court issued a declaration affirming that Safaricom breached the petitioner’s rights under the Copyright Act and recognised the businessman as the legitimate owner of the MTIN Mobile Wallet USSD code.
