Kenya's Safaricom is facing allegations that its new interest paying accounts and micro-loans service is based on an idea developed by the local micro-finance institution, Faulu Kenya.

Faulu Kenya said that Safaricom's new M-Shwari service was their idea and product and has asked a court to ban the service pending a full hearing.

In a statement, Faulu Kenya said that it developed the cash-advance service and then contacted Safaricom to seek a partnership with the mobile network operator.

The two companies signed standard non-disclosure agreements, but Safaricom is accused of them using the information gained to launch its own version,

The court has however declined to issue a temporary ban, until it has heard Safaricom's side of the dispute.

The case will be heard next week.

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