CBK fails to exit M-Pesa fraud case against Safaricom

The Central Bank of Kenya (CBK) has lost its bid to be removed from a High Court case in which M-Pesa user Paula Rogo sued Safaricom and M-Pesa Holding Company over mobile money fraud. The court ruled that the regulator's role overseeing payment service providers makes its presence necessary, because it could be asked to enforce any orders issued against the telecom operators.

The case stems from an alleged loss of Sh125,658. Rogo moved to court in February 2025, claiming she received a call from a person who introduced himself as a Safaricom employee. She said the caller sent messages that appeared to come through Safaricom's official SMS system while citing her M-Pesa balance, recent transactions and frequent contacts. Believing the caller was genuine, she followed instructions that ostensibly sought to secure her account and lost the money.

فہرست

01

Why the regulator must remain

02

What the petitioner is asking for

03

The companies' challenge rejected

04

What this means for M-Pesa users

Why the regulator must remain

CBK had asked the court to remove it from the case, arguing that it was not a proper party. Rogo opposed the application on the ground that CBK regulates payment service providers.

The judge found that the reliefs Rogo is seeking fall squarely within CBK's supervisory mandate. The court also noted that CBK had not shown any prejudice from remaining in the case, and warned that without the regulator, enforcement of any orders may be difficult.

What the petitioner is asking for

Rogo wants the court to declare that the defendants violated her constitutional rights to information, consumer protection and fair administrative action. Within 180 days, she is asking them to establish systems to prevent or reduce M-Pesa fraud, dedicated reporting lines and teams, and fair and timely compensation for victims.

She also wants Safaricom and M-Pesa Holding Company to strengthen systems for preventing mobile banking fraud, establish dedicated fraud-reporting channels and teams, investigate perpetrators and keep affected customers informed. She is seeking Sh125,658 plus general and punitive damages and interest.

The companies' challenge rejected

Safaricom and M-Pesa Holding separately challenged the suit, arguing that Rogo should first have used the dispute resolution process under the Communications Authority of Kenya. The court rejected that argument, finding that the relevant regulation uses the word “may” and therefore makes the process optional, leaving the High Court with jurisdiction.

The judge found that the case was not merely a consumer complaint. The case is scheduled for mention on September 17.

What this means for M-Pesa users

The ruling does not determine whether Safaricom is ultimately liable for the loss. It deals only with preliminary challenges, including CBK's attempt to exit the case and the companies' argument over jurisdiction.

The decision nonetheless keeps the central bank inside a dispute that could shape how mobile money fraud complaints are handled in Kenya.