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Safaricom will now have to pay a customer Sh452,868 that he lost to fraudsters who hacked his M-Shwari account.

This is after High Court Justice Asenath Ongeri upheld a decision by the Small Claims Court that the giant telco was responsible for money withdrawn from its client M-Pesa account after he reported the SIM card was stolen.

While dismissing an appeal by Safaricom, the judge held that the firm was in breach of the duty of care owed to Kafwa and as a result, he lost Sh452,868.

In her decision, Ongeri found that Safaricom was responsible for the loss incurred by the Kafwa since he took all the necessary steps to stop the transactions from his line.

“The appellant (Safaricom) owed the respondent (Kafwa) a fiduciary duty of care to act with diligence after he reported the loss of this telephone and took all the necessary steps to have all the transactions blocked,” the judge ruled. Kafwa lost his funds that were held in his account hours after his phone was stolen on October 10,2021. Immediately after he lost his phone he immediately called the teleco’s customer care asking them to disable his M-Pesa account.

 The firm’s attendant informed Kafwa his line would not be disabled immediately as he was subscribed to the “Advantage hybrid Tariff” and advised him to visit the nearest retail centre, where he would be assisted. Following the communique, he rushed to Safaricom’s retail store along Moi Avenue and since he did not have his identity card with him, he was advised to get a police abstract.

By then, the fraudsters had accessed his accounts and managed to withdraw Sh298,812 from his M-Pesa account. The following day he discovered another Sh116,505 had been withdrawn from his M-Shwari account. Aggrieved by the loss of his funds, Kafwa sued Safaricom demanding a refund of Sh751,680 which was withdrawn from his M-Pesa account. He informed the trial court that he took all necessary steps to ensure the transactions are blocked but the telecommunication company failed miserably to protect the thieves from defrauding him.

Upon hearing the matter, Milimani small claims magistrate Velniah Mochache found that Safaricom was responsible for the loss of Sh 452,868 and directed that the firm refund the cash plus the cost of the suit and interest. The magistrate also ruled that Kafwa was responsible for the loss of Sh 292,812. Dissatisfied with the decision Safaricom lodged an appeal before the High Court.