Resh Trouble for Safaricom as 9.1 Million Fuliza Users Feature in High Court Case

Millions of Kenyans who use Safaricom’s Fuliza service could be affected by a legal battle after the High Court allowed a representative lawsuit challenging how borrowing charges are communicated to customers.

The case, filed by Paul Gakungu Mihango, raises concerns about the transparency of fees and interest charged to customers who borrow money through the popular M-PESA overdraft facility.

The complainant wants Safaricom to provide customers with clearer information showing how much they pay in interest and administrative charges whenever they use Fuliza.

The case focuses on whether customers receive sufficient details about the costs of borrowing, allowing them to understand the deductions made from their transactions.

Safaricom, however, maintains that it provides information about Fuliza charges through SMS notifications and M-PESA statements.

The court’s decision to allow the representative proceedings means the dispute can move forward, although it does not amount to a finding that Safaricom has broken the law.

The development has attracted attention because Fuliza remains one of the widely used credit facilities among Kenyans who need temporary financial assistance when completing M-PESA transactions.

Many customers rely on the service to pay bills, purchase goods and send money when their available M-PESA balance is insufficient.

The legal proceedings could therefore have wider implications for consumer rights and the disclosure of borrowing costs in Kenya’s mobile financial services sector.

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