Safaricom, Kenya’s largest telecommunications company, is now facing a serious lawsuit that could damage its reputation.
As reported by Nation Africa, a business partner, Goodweek Inter-Services Ltd, has taken the company to court, claiming that Safaricom has been unfair in handling commissions for its dealers. Goodweek has been working with Safaricom since 2002, running shops in Nairobi, Migori, and Homa Bay.
Over the years, the dealer invested over Sh180 million to meet Safaricom’s requirements and stock its products. But things changed when Safaricom introduced new rules that made it difficult for dealers to earn commissions from new customer registrations.
Goodweek argues that Safaricom set unrealistic sales targets that were almost impossible to achieve. By doing this, Safaricom allegedly blocked dealers from getting the commissions they had worked for. The situation got worse in December 2023 when Goodweek refused to sign a new contract with Safaricom.
The dealer said the new agreement was unfair because it allowed Safaricom to make decisions without involving dealers. It also set a financial penalty for Safaricom at only Sh100,000, even if the company was found guilty of breaking the contract.
Goodweek also accused Safaricom of forcing dealers to spend their own money on marketing and promotions, which they felt was unfair.
Safaricom, on the other hand, denies these claims. The company insists that the dispute is simply a business disagreement and that all dealers are given the same contract terms.
Safaricom says that the sales targets are reasonable and that no dealer is forced to spend money on marketing. The company believes Goodweek had the choice to accept or reject the contract, and it was not forced into anything.
The case is now attracting more attention because other dealers might join Goodweek in the lawsuit. With more than 400 dealers across Kenya, the number of businesses complaining against Safaricom could grow.
If the court allows more dealers to join the case, Safaricom could face a bigger legal battle. Dealers say they have been struggling with Safaricom’s tough business conditions for years, and this lawsuit is an opportunity to challenge the company’s unfair practices.
If the court rules in favor of Goodweek and the dealers, Safaricom might be forced to change its contracts and business methods.
The company could be required to offer fairer deals and give dealers more power in decision-making. However, if Safaricom wins the case, it will likely continue with its current business model, which could make its relationship with dealers even worse.
This is not the first time Safaricom has faced lawsuits. The company has been sued before over issues like SIM swap fraud and unauthorized access to customer bank details.
These cases raise questions about how Safaricom runs its business and whether it truly values fairness and customer protection. If the company does not change how it operates, it risks losing the trust of both its business partners and customers.
The outcome of this lawsuit will be crucial in shaping Safaricom’s future and determining whether it remains the dominant company it has always been or if it starts to lose ground due to these controversies.
