Safaricom PLC  has been ordered to pay a businessman KSh1.4 billion after the High Court found that the telecom giant infringed on his rights to the MTIN Mobile Wallet USSD application.

In the ruling, the court said the award was compensation for negligence and Safaricom’s continued use of the technology. The judge also directed the company to pay royalties equivalent to 0.5 percent of M-Pesa revenue every financial year starting March 31, 2025, for as long as the service or any similar platform remains operational.

The court, however, declined to issue a permanent injunction stopping the use of the platform, holding that continued royalty payments would be a more suitable remedy.

In a strongly worded judgment, the court noted that innovation does not only come from corporate boardrooms and warned companies against adopting ideas from external innovators without ensuring independently developed alternatives.

The judge also faulted Safaricom for failing to produce key documents during the case, saying the conduct fell below the standards expected of a market leader.

The court further declared that Safaricom violated the businessman’s rights under the Copyright Act and affirmed him as the rightful owner of the MTIN Mobile Wallet USSD code.