Safaricom is facing criticism after a Nairobi court ordered it to pay over Ksh 55 million to 17 former Area Sales Managers who were unlawfully dismissed.
The ruling was delivered by Justice Mathews Nduma Nderi on July 17 after a long five-year legal battle. The court decision exposed weaknesses in Safaricom’s disciplinary processes and internal systems, and also sent a message to other employers who use their power unfairly.In 2016, Safaricom introduced Huawei Y311 handsets across the country to help with SIM-card registration.
These devices were sent to M-Pesa agents through Area Sales Managers. However, the managers quickly noticed problems. The phones were not locked to Safaricom’s network, could access social media, and lacked any central system to track or control how they were used.
The managers raised these issues early and warned that some agents might misuse or even sell the phones. But the company ignored their concerns and went ahead with the rollout.By 2018, the situation had become worse.
Safaricom’s Risk Division asked for audits, and it turned out thousands of the phones had either gone missing or were being used differently.
Some agents had shut down, moved, or disappeared taking the devices with them. Safaricom responded by calling the managers to its headquarters in March 2018, where they were forced to sign witness statements, often written by the Risk team.
They were given only 48 hours to track down devices scattered across large regions, which they said was an impossible task.In June 2018, 39 managers were dismissed, but only five were reinstated.
Seventeen went to court, saying they were being blamed unfairly for a failed project. The court agreed. Justice Nderi ruled that Safaricom had acted unlawfully and failed to follow proper procedures.
He said the company did not give proper warning letters, rushed the disciplinary process, denied access to important documents, and expected the managers to do an unrealistic job in a very short time.
The judge added that Safaricom’s own system failures caused the problem, not the actions of the managers. Each of the 17 will now be paid compensation equal to ten months’ gross salary and an extra month’s salary instead of notice.
The smallest amount awarded is Ksh 935,000 and the highest goes beyond Ksh 4.2 million. Safaricom will also have to pay interest starting from July 17, 2025, and cover all legal costs. Any delays in payment will only add to the total amount owed.
This is not the first time Safaricom has been found guilty of unfair labour practices. Earlier this year, the same court told the company to pay Ksh 1.1 million to a former call centre worker after mishandling his dismissal.
For the 17 former sales managers, this court ruling brings relief after years of struggle. Many now work in smaller companies for less pay, but the judgment clears their names and proves they were treated unfairly.
Safaricom still has a chance to appeal, but experts say dragging out the case could only increase the amount they owe. This case adds to growing concern over how big companies in Kenya handle workers. It also brings attention to Safaricom’s failure to listen to internal warnings and its treatment of staff who raise concerns.
Once seen as a leader in corporate responsibility, the telco now faces serious questions about its human resource policies and accountability.
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