Safaricom Faces Legal Challenge Over M-Pesa Bill Manager

Safaricom PLC, Kenya's leading telecommunications provider, is embroiled in a legal dispute with Kibo Capital Group Limited concerning the M-Pesa Bill Manager for Businesses. The Industrial Property Tribunal (IPT) has issued an injunction preventing Safaricom from marketing or utilizing the Bill Manager until the case is resolved.

Allegations of Intellectual Property Infringement

Kibo Capital alleges that in September 2017, they presented a biller and e-receipting solution to Safaricom's Senior Product Manager for M-Pesa. Although discussions ensued, no formal agreement was reached. Subsequently, Safaricom launched a product resembling Kibo's innovation, which had been registered as a utility model with the Kenya Industrial Property Institute (KIPI) in November 2017.

Safaricom's Position

Safaricom has yet to publicly respond to the allegations. However, the company has previously faced similar accusations. In a separate case, Safaricom is contesting a High Court decision awarding Sh944.5 million to a software developer over claims of unauthorized use of M-Pesa applications .

Implications for the Fintech Industry

This legal battle underscores the challenges surrounding intellectual property rights in Kenya's burgeoning fintech sector. As mobile money platforms like M-Pesa continue to expand, ensuring the protection of innovative ideas becomes increasingly critical. The outcome of this case could set a significant precedent for future collaborations between tech innovators and large corporations.​

Next Steps

The IPT's injunction remains in effect until the dispute is adjudicated. Stakeholders in the fintech industry are closely monitoring the proceedings, recognizing the potential ramifications for innovation and intellectual property rights enforcement in Kenya.​

SOURCE: AGENCIES