Kenya’s leading telecom operator, Safaricom, is embroiled in a legal dispute with Goodweek Inter-Services Limited, a long-time dealer of its M-PESA services, SIM cards, and merchandise. The case, filed in Kenya’s High Court, accuses Safaricom of abusing its dominant market position to impose unfair contract terms.
Goodweek, which has been a Safaricom dealer since 2002, lost access to the telecom’s dealer portal in April 2024 after failing to renew its dealership agreement. Safaricom argues that the suspension was procedural and automatic, as the contract had expired. The company claims over 400 other dealers renewed their agreements without issue and insists Goodweek had ample notice to do the same.
However, Goodweek contends the termination was deliberate and unfair. The dealer alleges that Safaricom used its market dominance to coerce smaller partners into accepting non-negotiable contracts. These agreements reportedly included clauses allowing unilateral termination by Safaricom and imposing high sales targets—such as registering 20,700 new subscribers in 2023, a goal Goodweek claims was unrealistic.
Goodweek has also named Vodafone Plc, Vodafone Kenya Limited, and Mobitelea Ventures Limited as respondents, suggesting the issue extends beyond Safaricom. The telecom giant’s legal team has questioned this move, arguing that the dispute is contractual and should have been resolved through arbitration as stipulated in the agreement.
The case raises broader questions about power dynamics in Kenya’s telecom sector. If Goodweek prevails, it could set a precedent for how dominant firms engage with smaller partners. Safaricom maintains its stance that the contract lapsed naturally and denies any wrongdoing.
