Safaricom named in M-Kesho suit

Safaricom has been enjoined in a suit where a businessman is accusing Equity Bank of a breach of confidence.

Hoswell Mbugua Njuguna claims the bank adopted and commercialised his M-Kesho look-alike mobile banking concept.

Mr Njuguna had opposed the move to bring Safaricom on board, but Justice Leonard Njagi ruled that the country’s largest mobile operator had been adversely mentioned in the case.

Mr Njagi on Wednesday ruled that Safaricom was an interested party and “should therefore be enjoined in the proceedings so that its input can be taken into consideration.”

M-Kesho is a partnership between Safaricom and Equity Bank. Mr Njuguna claims that Equity used confidential information to develop the M-Kesho product.

The judge’s ruling was informed by a demand letter from Mr Njuguna to Equity and copied to Safaricom CEO Michael Joseph.

“The letter is enough evidence of the partnership between Equity and Safaricom in the M-Kesho product,” said the judge.

Sued Equity

Through lawyer Duncan Anzala, Mr Njuguna said he had sued Equity and not Safaricom over alleged breach of confidence.

Safaricom, through lawyer John Ohaga, sought for more time to file its response. The case was adjourned to September 30.

Mr Njuguna accuses Equity of breaching confidential information about a concept similar to M-Kesho, allegedly shared with the bank’s two agents.

He claims M-Kesho’s features contain most of the details of his Weka Usaidike concept.

In a sworn statement, Mr Njuguna claims to have confided the information in Equity’s Anne Kinuthia and Eric Karobia in August 2006 in a bid to secure an deal with the bank.

Mr Njuguna said he was shocked to learn of the agreement between Equity and Safaricom on its new product.

Since the product was launched in May, the bank is said to have opened over 600,000 accounts.

M-Kesho is used by customers to deposit and withdraw money through their mobile phones.

The bank has also introduced countrywide outlets for the service.