CBK Stays in M-Pesa Fraud Case Against Safaricom

In Short

Kenya’s High Court has declined a request by the Central Bank of Kenya, CBK, to be removed from a fraud case linked to M-Pesa. The suit targets Safaricom and M-Pesa Holding Company. The next court mention is set for September 17, 2026.

What Happened

The Central Bank of Kenya, CBK, asked the High Court to drop it from a case filed by an M-Pesa user, Paula Rogo. Rogo alleges she lost Sh125,658 through mobile money fraud.

The court refused. It said CBK’s supervisory role over payment service providers, meaning firms that move money digitally, makes it a necessary party to the case. The judge noted CBK could be required to enforce any orders the court issues.

The High Court also rejected a preliminary challenge from Safaricom and M-Pesa Holding Company on jurisdiction. A jurisdiction challenge is an attempt to say a court does not have the legal power to hear a dispute. That means the case will proceed.

Rogo’s claim dates back to events described in filings around February 2025. She says a caller who introduced himself as a Safaricom employee contacted her. She also claims the messages appeared to come through Safaricom’s official SMS channel and referenced details like her M-Pesa balance, recent transactions, and frequent contacts. She says she followed the instructions and later discovered the funds were gone.

Why It Matters

Mobile money fraud disputes are no longer only about telcos and user error. Courts are increasingly examining the full oversight chain, including the regulator.

For fintech operators and payment platforms, this raises the stakes on controls like customer verification, SIM swap protection, and secure customer communication channels. It also signals that regulators may be pulled into enforcement and remediation when consumer losses end up in court.

In Kenya’s mobile money market, where M-PESA is a major rail for everyday payments, outcomes from cases like this can shape how responsibility is shared across providers and supervisors.