How Sam Wanjohi lost a Sh1.1 billion award against Safaricom over due to a missing contract signature, as ruled by the Kenyan High Court on November 11, 2025
Picture this: It’s 2018, and Sam Wanjohi, a visionary entrepreneur behind Popote Innovations, sits down with telecom giant Safaricom, Kenya’s M-Pesa pioneer. Armed with a groundbreaking idea called “Popote Pay,” Wanjohi pitched a digital solution to empower small and medium enterprises (SMEs) with seamless payments, expense tracking, and team management—all integrated into the M-Pesa platform. The potential was massive, and the dream seemed within reach.Wanjohi’s vision was simple yet revolutionary: a partnership where Popote’s technology would merge with M-Pesa, sharing revenues based on a mutually agreed formula. Emails flew, documents were exchanged, and a draft Partnership Agreement was signed by Popote. But here’s where the story takes a dramatic turn—Safaricom never put pen to paper on the final contract. That single oversight would later prove fatal.
The Goodwill Payment That Sparked a Legal Firestorm
Fast forward to 2020. The partnership talks collapsed, leaving Popote with sunk costs and unfulfilled promises. Surprisingly, Safaricom stepped in with a Sh13.5 million payment to Popote. Was this a gesture of goodwill, or a clever legal move? Safaricom argued it was a full and final settlement, reimbursing Popote for development costs and closing the door on further liability.
Popote, however, saw it as a mere drop in the bucket, nowhere near the value of their intellectual property (IP).Then came the bombshell. In June 2021, Safaricom launched the M-Pesa Super App and M-Pesa Business App—products strikingly similar to Popote Pay’s proposed features. Wanjohi cried foul, alleging IP theft. The dispute escalated to arbitration, where, in November 2024, an arbitrator sided with Popote, awarding a staggering Sh1.1 billion. This included Sh39.2 million for direct costs and a whopping Sh902.7 million as a revenue share from the allegedly derivative apps.
The High Court’s Verdict
Safaricom wasn’t about to let this stand. They challenged the award in the High Court, arguing the arbitrator overstepped by enforcing a non-existent contract. On November 11, 2025—just a day before this article—Justice Peter Mulwa delivered a ruling that stunned many. The Sh1.1 billion award was overturned. Why? The lack of a signed contract.The court’s reasoning was clear: without Safaricom’s signature, there was no binding agreement.
Popote’s evidence—emails, draft agreements, and technical plans—fell short of proving a legal partnership. Furthermore, the Sh1.1 billion award was deemed speculative, lacking forensic proof to justify the sum. The Sh13.5 million payment, the court agreed, had settled all obligations.This decision raises a critical public policy question: should Kenya’s business landscape allow massive awards based on unsigned contracts? The ruling suggests not, prioritizing contractual certainty over informal dealings.
What This Means for Kenya’s Fintech Future
This case is more than a legal tussle—it’s a wake-up call for Kenya’s thriving fintech sector. M-Pesa, a global fintech icon, has transformed lives, but this saga exposes the risks innovators face when sharing ideas without watertight agreements. SMEs, the backbone of Kenya’s economy, often lack the resources to protect their IP, leaving them vulnerable to bigger players.
Business Daily Africa recently noted that this ruling could push for stricter formalities in partnerships, ensuring innovators like Wanjohi aren’t left empty-handed. Yet, it also highlights a gray area: how do you prove IP theft when ideas are shared in good faith?
