A Nairobi businesswoman has moved to the High Court to challenge what she calls an unconstitutional policy by Safaricom PLC, which allows funds sent in error to be used to settle Fuliza overdraft loans, even when the sender immediately requests a reversal.
In a constitutional petition, Eunice Ng’ang’a argues that Safaricom’s handling of mistaken M-Pesa transfers infringes on multiple constitutional rights and violates consumer protection laws. The case has been assigned to Justice Lawrence Mugambi, who has issued directions on service and timelines for the parties’ responses.
The Disputed Transaction
Court documents show that the dispute stems from a transaction on September 4, 2024, when Ng’ang’a accidentally sent Sh2,700 to the wrong mobile number.
She says she realized the error almost immediately and followed Safaricom’s M-Pesa reversal procedure to recover the funds. She also promptly sent the same amount to the intended recipient.
However, Safaricom declined the reversal request, citing that the unintended recipient’s M-Pesa account had an outstanding Fuliza overdraft.
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Ng’ang’a contends that the funds were “automatically deducted by Safaricom to offset the recipient’s Fuliza loan and were never accessed or withdrawn by the recipient.”
She adds that when she followed up at a Safaricom retail outlet and later submitted a formal demand, officials told her the money could not be refunded and suggested she report the matter to the police.
Ng’ang’a maintains that the issue is not criminal, as the recipient did not benefit from the funds; instead, the service provider retained the money.
Legal Arguments
In her petition, Ng’ang’a claims the policy violates her right to property, fair administrative action, consumer rights, dignity, freedom of conscience, and freedom of association.
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She further argues that her “contract with Safaricom does not extend to the recovery of another customer’s debt using her funds, particularly where there was no valid transaction between her and the Fuliza debtor.”
Framing the case as one of public interest, Ng’ang’a asserts that many Kenyans have lost money in similar situations when mistaken transfers are automatically applied to settle Fuliza debts.
Relief Sought
Ng’ang’a is asking the court to:
- Declare the policy unconstitutional and unlawful.
- Issue orders quashing and prohibiting its enforcement.
- Restore the Sh2,700 she lost.
- Grant broader refund orders for other affected customers.
- Award Sh50 million in general and punitive damages.
Justice Lawrence Mugambi has directed that the petition be served within seven days, with responses due 14 days after service. The case is scheduled for mention on March 25, 2026.
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This case could set an important precedent for how erroneous mobile money transactions are handled in Kenya, particularly when they intersect with digital credit products like Fuliza.
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