Kenya’s High Court Dismisses Lawsuit Against Safaricom

March 25, 2025

(3 Minutes Read)

Kenya’s High Court has dismissed a lawsuit against Safaricom regarding its reverse call service, which allows callers to transfer call charges to the recipient by dialing “#” before the number. A Kenyan inventor had alleged that Safaricom had stolen his idea, but the court ruled in favor of the telecom company, stating that the inventor could not demonstrate ownership of the concept.

This case underscores the challenges faced by African innovators in safeguarding their ideas. As Kenya’s largest telecom provider, Safaricom has encountered similar legal disputes over its technological advancements. Its mobile money service, M-PESA, has significantly improved financial inclusion but has also been criticized for high transaction fees and market dominance.

In 2013, the Bill & Melinda Gates Foundation raised concerns about M-PESA’s pricing, observing that sending $1.50 cost $0.30 in Kenya, whereas in Tanzania, where competition was greater, fees were substantially lower. A USAID-supported study revealed that less educated users were often charged unclear fees and unnecessary services, quickly depleting their M-PESA balances.

The dismissal of this lawsuit also highlights the inadequacy of intellectual property laws in Kenya, making it difficult for local innovators to protect their ideas. Many lack the legal resources to challenge large corporations, and the fast-paced evolution of technology complicates the enforcement of intellectual property rights. This uncertainty often deters local inventors from contesting companies like Safaricom, as they fear lengthy and costly legal battles.

To keep pace with technological advancements, Kenya needs to strengthen its intellectual property laws to address these issues. Without clear legal protections, disputes like this will likely continue, potentially hindering creativity and the development of homegrown solutions. The legitimate concern of having ideas copied without recognition is leading many innovators to remain silent rather than fight back.

For now, Safaricom can continue to provide reverse call services without legal obstacles. However, to mitigate future lawsuits, the company may need to engage more with local innovators. A collaborative approach could foster trust, encourage creativity, and promote a fairer tech ecosystem in Kenya.