‪Nairobi Businesswoman Sues Safaricom After Cash She Mistakenly Sent To Wrong Number Was Used To Offset Recipient’s Fuliza Debt‬

A businesswoman has moved to the High Court seeking to overturn what she terms an unconstitutional policy by Safaricom PLC that allows money sent in error to be used to settle Fuliza overdraft loans, even where a sender promptly seeks a reversal.

In a constitutional petition filed at the High Court in Nairobi, Eunice Nganga argues that the telecommunications giant’s handling of erroneous M-Pesa transfers violates multiple constitutional rights and consumer protection laws.

According to court papers, the dispute stems from a transaction on September 4, 2024, when Nganga mistakenly sent Sh2,700 to the wrong mobile number.

She says she realised the error almost immediately and initiated a reversal within minutes, in line with Safaricom’s M-Pesa reversal procedure. She also promptly sent the same amount to the intended recipient.

However, the reversal request was declined on the basis that the unintended recipient’s line had an outstanding Fuliza overdraft.

Nganga 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the funds were “automatically deducted by Safaricom to offset the recipient’s Fuliza loan and were never accessed or withdrawn by the recipient”.

The petitioner further states that when she followed up at a Safaricom retail outlet and later through a formal demand, she was informed that the money could not be refunded and was advised to report the matter to the police.

She argues that the issue is not criminal in nature, as the recipient did not benefit from the funds, and that the money was instead retained by the service provider.

In her petition, Nganga claims the policy breaches the right to property, fair administrative action, consumer rights, dignity, freedom of conscience and freedom of association.

She 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”.

She has framed the case as one of public interest, asserting that many Kenyans have lost money in similar circumstances when erroneous transfers are used to settle Fuliza debts.

Nganga is seeking declarations that the policy is unconstitutional and unlawful, orders quashing and prohibiting its implementation, restitution of the Sh2,700, and far-reaching refund orders for other affected customers.

She has also asked the court to award Sh50 million in general and punitive damages.

Justice Mugambi directed that the petition be served within seven days, with responses filed within 14 days of service.

The matter is scheduled for mention on March 25, 2026.