Safaricom Ordered to Pay Businessman Ksh1.4 Billion Over USSD Technology Case

Safaricom has been ordered by the High Court to pay a businessman Ksh1.4 billion after the court found that the company infringed on the MTIN Mobile Wallet USSD application.

In the ruling, the court said the money awarded was meant to compensate the businessman for negligence and Safaricom’s continued use of the technology.

The judge also directed Safaricom to pay royalties equal to 0.5 percent of M-Pesa revenue every financial year starting from March 31, 2025. The payments will continue for as long as the service or a similar platform remains active.

However, the court declined to issue a permanent injunction against the telecom company. The judge explained that future royalty payments would be a better solution instead of stopping the service completely.

During the judgment, the court noted that innovation does not only come from large companies and corporate offices. The judge warned firms against using ideas from individuals after rejecting their proposals.

The court also criticised Safaricom for failing to provide important documents during the hearing. According to the ruling, the company did not meet the standards expected from a leading company in the market.

In addition, the court declared that Safaricom violated the businessman’s rights under the Copyright Act and confirmed that he is the rightful owner of the MTIN Mobile Wallet USSD code.