An M-Pesa user has sued telecommunication firm Safaricom and digital payment services provider Kopokopo for shutting down his till number account without explanation over allegations of engaging in fraud.
Mr Christopher Kahwai, a businessman, says Safaricom and Kopokopo have also refused to reinstate the till number and that he has been unable to access his money from the account.
He says he procured a business account and the till number in February 2018 and continued to seamlessly use it to receive payments from his business clients until June 2021 when it was abruptly shut down.
In the suit filed through Masibo & Company Advocates, Mr Kahwai claims that upon enquiry he was informed that the affected till number was allegedly used for fraudulent activities.
“When the plaintiff sought clarity on the alleged fraudulent activity, he was referred back and forth between Safaricom and Kopokopo with no conclusive response aside from unfulfilled promise to reinstate his till number,” says the advocates.
Economic losses
As a result of the said closure, they say Mr Kahwai has suffered economic losses and harm to his business both in terms of costs and reputation.
“The plaintiff suffered grave reputational harm when his customers, who had already made payments through the till number could not access funds or complete transactions leading to him being repeatedly termed a “con man”,” the suit papers indicate.
In addition, Mr Kahwai, whose business primarily relies on word-of-mouth referrals has dwindled as a result of the tarnished reputation and has been unable to recover.
Alleging negligence against Safaricom and Kopokopo, Mr Kahwai says they have breached their duty of care to him by closing the till number without reason or explanation and failing to reinstate the same for over one year.
He wants the court to award him general and punitive damages for negligence. The suit is pending a hearing. BY DAILY NATION