Safaricom Faces Lawsuit for Unauthorized Bank Details Access

Millions of Safaricom customers are now able to join a class action lawsuit against the telecom company in response to a rule in the SIM card registration regulations that permit the company to gather bank information from mobile phone users.

The data privacy statement’s clause 3.2.1 states that the telecom operator may “collect and store information including credit or debit card information, information on bank account numbers, Swift codes or other banking information.” Subscribers completed the data privacy statement as part of the re-registration process.

Judge Chacha Mwita of the High Court granted two senior attorneys, Wilfred Nderitu and Charles Kanjama, permission to contact additional class members through the media to request that Safaricom remove the clause from the class action lawsuit.

The judge instructed the attorneys to post an invitation to join the lawsuit in a daily publication for Kenyans who might be interested.

The phrase may be found in a 58-page document that contains the terms and conditions related to the SIM card registration update from last year.

The attorneys claim that because Safaricom controls a majority of the Kenyan mobile market, consumers were compelled to accept the condition because they had no other option.

In September, Safaricom held a 66 percent market share, while rivals Airtel and Telkom Kenya held 26.3 percent and 4.9 percent, respectively.

“As such, the stringent mechanisms and crafty ways of collecting data without assurance of data security are precipitated by the thought that its clients have no option but to opt-in for them to continue enjoying the products and services that it offers,” Mr. Nderitu said.

Prior to the judge approving the invitation of additional subscribers to sue the massive telco, Safaricom fought the class action lawsuit.

In the US style, one or more persons file a class action, and if they are successful, all the wronged customers stand to get compensation.

Following a customer’s lawsuit against the company and the sector regulator Communications Authority of Kenya (CA) over SIM Swap fraud, in which con artists stole millions of shillings from the bank accounts of mobile phone subscribers, this is the second-class action lawsuit brought against Safaricom and the CA.

The court is now hearing the matter. Businessman Abdi Zeila is seeking a ruling that the CA violated its regulatory obligations by failing to verify that Safaricom is offering services that are protected from scammers.

In the class action lawsuit involving the bank details, Justice Mwita further ordered Safaricom and the CA to submit their defense in writing within seven days.

On March 14, the case will be addressed.