In Kenya, big companies often hold all the power when it comes to new ideas in technology and finance. But one recent court decision has sent a strong message that this power has limits.
The High Court ordered Safaricom to pay entrepreneur Peter Nthei 1.4 billion Kenyan shillings. This came after the company took his concept for a mobile wallet feature and used it without giving him credit or payment. The case shows what can happen when a giant firm dismisses an inventor only to launch something very similar later.
Peter Nthei, also known as Muoki, developed a product called the M-TEEN MOBILE WALLET USSD CODE. It was designed to help parents control how their teenagers spend money through mobile wallets.
This tool would give families better oversight and safety in daily money matters. In 2021, he pitched this idea directly to Safaricom executives. At the time, the company turned it down. They pointed to regulatory issues and problems with putting it into practice. Nthei walked away without a deal. But months later, Safaricom rolled out its own version that looked a lot like his plan.
The court looked closely at the details. It found that Safaricom’s “Manage Child Account” feature had an uncanny resemblance to Nthei’s USSD flows and system responses. The judge ruled that Nthei’s work was not just a simple idea but a protected literary expression under copyright law. Safaricom argued that they developed it independently with help from Huawei and after a verbal request from the Central Bank of Kenya.
However, they could not produce strong documentary evidence to back this up. This lack of proof worked against them in the case.
The timing also raised questions. Safaricom launched “M-PESA Go” in November 2022, not long after Nthei’s pitch.
This ruling goes beyond one payment. The court also set up a compulsory license.
Safaricom must now pay Nthei 0.5 percent of its gross M-PESA revenue every year as long as the product stays in use.
The 1.4 billion shillings award was calculated as 1 percent of the company’s 2024 M-PESA revenue.
The judge noted that M-PESA revenue grew by about 30 percent after the disclosure of Nthei’s concept.
This decision highlights how ideas from ordinary entrepreneurs can drive real business success for large firms. Yet too often, these creators see no reward.
For many Kenyans, this case feels personal. Stories like this one come up often in business circles. Inventors pitch fresh solutions to big players in telecom and finance. They hope for partnerships that can bring their ideas to millions of users. Instead, they sometimes face rejection followed by copycat products.
One person who commented on the case shared his own experience. He had pitched a mobile cab-hailing idea inside Safaricom only to see a similar service appear shortly after. Such accounts point to a pattern that leaves small creators frustrated and without support.
Safaricom is a major force in Kenya’s economy. M-PESA has changed how people send and receive money across the country and beyond. It has brought financial services to places where banks do not reach. This success is real and important. But with great success comes great responsibility.
Companies in this position must handle ideas from outsiders with care. They should have clear processes to protect intellectual property during pitches. Without such steps, trust breaks down. Young innovators may stop sharing their best thoughts. This hurts everyone because new ideas keep industries moving forward.
The court decision stands as a win for individual creators. It shows that Kenyan law can protect original work even against powerful corporations. Nthei spent time and effort building something useful for families. He took the risk of approaching a big company. Now the ruling gives him recognition and financial compensation. This could encourage more people to develop solutions for local problems.
Kenya has a young population full of talent. Features like parental controls on mobile money can make daily life safer for teenagers and their parents. Similar tools could address other needs in education, health, or small business.
The ruling against Safaricom is about more than money. It is about respect for creativity and innovation.
