Companies

M-Pesa agents in row with Safaricom over contracts

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M-Pesa is market leader in mobile money business. FILE PHOTO | NMG

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Summary

  • The agents claim that Safaricom last month issued them with termination notices and has since declined to engage them with the aim of reversing the telco’s move.

Eight Safaricom #ticker:SCOM M-Pesa agents have moved to court seeking reinstatement of their contracts with the telecoms company.

The eight firms, which collectively operate more than 100 M-Pesa tills, claim that Safaricom last month issued them with termination notices and has since declined to engage them with the aim of reversing the telco’s move.

Walts Ventures, Connect Hub Enterprises, Maxmillian Agency, Midax Petroleum, Lemiz Inter Traders, Kaiwan Enterprises, Real Technologies and Da Carlsam Limited claim that their contracts with Safaricom have all been terminated unfairly.

The eight firms claim that the termination will see agents that they hired continue to do business with Safaricom, despite their investment in the M-Pesa business that was done using loans from various banks.

READ: Safaricom goes for photo IDs to block M-Pesa fraud

While none of the firms has indicated why Safaricom pulled the plug on their contracts, the telco claims that they sold their businesses to third parties in violation of the M-Pesa agreement.