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Safaricom recently won a significant case in the Kenyan High Court against a software developer, Samuel Wanjohi of Popote Innovations. The ruling overturned a previous arbitration award of Ksh 1.1 billion to the developer, who claimed Safaricom used his ideas to develop the M-Pesa Super App and M-Pesa Business App.
Details of the Case
The Claim: Samuel Wanjohi, through his company Popote Innovations, claimed that he shared his "Popote Pay" mobile payment solution with Safaricom in 2018 under a proposed partnership agreement. He alleged that Safaricom later abandoned the partnership but used his ideas to launch its own M-Pesa apps in June 2021 without compensation.
The Initial Ruling: In November 2024, an arbitrator agreed with Wanjohi and awarded him Ksh 1.1 billion (approximately USD 8.5 million), based on projected revenue shares from the M-Pesa apps.
The High Court Decision: Safaricom challenged the arbitration award in the High Court, arguing that the partnership agreement was never finalized or signed, and thus no binding contract existed. The High Court agreed with Safaricom, ruling that the arbitrator's award was based on an unsigned and inoperative contract and speculative financial assumptions, which "offends the principles of contractual certainty, legality, and fairness". The court found no factual or expert evidence to support the claim that the apps were similar.
Previous Case: This is not the first time Safaricom has faced such a lawsuit. In 2021, the High Court dismissed a KSh 209 million suit by another developer, Jonathan Murangiri Gikabu, who claimed Safaricom stole his idea for the M-Pesa 1 Tap service, again citing a lack of substantial evidence or a formal agreement.
The case has sparked discussion among experts about how dominant tech companies can leverage their market control to "fast-follow" smaller innovations, highlighting the need for potentially updated competition laws to protect innovators.
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