Safaricom fails to stop contempt orders on Invesco pay claim

Safaricom shop

A Safaricom Shop located along Kimathi Street as pictured on March 8, 2023.

Photo credit: Francis Nderitu | Nation Media Group

The High Court has dismissed an application by Safaricom seeking to suspend a decision that found its bosses in contempt of court, over the failure to release Sh7.7 million to an Embu man who is claiming money from troubled Invesco Assurance.

Justice Lucy Njuguna rejected the application by the country’s leading mobile telephone operator stating that the company failed to convince her that the telco deserves the order.

Mr Ephantus Mbogo Njuki obtained court orders compelling Safaricom to release the money saying the troubled insurer operated an account through a Paybill (mobile money) number, which should be used to settle his insurance compensation.

Safaricom said in an application through Daniel Ndaba, a senior legal manager that the telco was not aware of the order made in September last year and subsequent decisions made by the court including the warrant for the arrest of its directors.

“There is no appeal before this court or even a draft memorandum of appeal challenging the decision of the trial court that adjudged the directors of the applicant guilty of court,” the judge said.

The court further said the company has not even challenged the ruling delivered in December that found its senior leadership –including chief executive officer Peter Ndegwa, Dilip Pal, Winfred Ouko, and Linda Muriuki— in contempt of court.

Mr Ndaba said in an affidavit that the court papers were served to Safaricom using an email that was provided during the Covid-19 pandemic, but which was temporarily suspended afterwards.

He said none of the directors was served personally with the proceedings against the rules that require a company must be served on the secretary, director of a principal officer of a corporation.

The company sought the suspension of the proceedings, pending the determination of its appeal.

Mr Mbogo opposed the case saying the application was meant to delay his right to enjoy the fruits of the judgment.

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