BitPesa Awaits Kenyan Court Ruling Against Safaricom

BitPesa, a Kenya-based bitcoin remittance startup, and Lipisha, an automated mobile payments company, have filed a lawsuit against the country’s leading mobile operator Safaricom alleging that it intimidated Lipisha, forcing it to suspend its services without notice, Disrupt Africa reported.

Elizabeth Rossiello, CEO and co-founder of BitPesa, said in a statement to CoinDesk, "I do not wish to comment much on a matter in court. BitPesa has been wronged, which is why we have referred the matter to court...We remain confident that even a small company like BitPesa will gain a fair trial and look forward to the court's decision."

Lipisha uses various platforms to automate mobile payments and one of these was Safaricom’s M-Pesa, until November 12th, when access was suspended for Lipisha’s largest client BitPesa, for whom Safaricom had explicitly asked the former not to continue its services, as reported by Techcabal.

Mr Kiragu Kimani, lawyer for the firms, told the Daily Nation, “The suspension of BitPesa’s access to M-Pesa services, and the demand that Lipisha stops transacting with BitPesa is unlawful and infringes on the firms’ rights to acquire and own property, fair administration as well as their economic interests”.

Lipisha claims that the mobile operator not only suspended its services and but also demand it to produce its licence from Central Bank of Kenya on the assumption that it trades in Bitcoin. Though the digital currency is not illegal in the country, it has not been recognized either.

"It is CBK, which told BitPesa that bitcoins are not regulated in Kenya but Safaricom insists that it produces a licence to that effect," Kimani said, according to the Daily Nation.

The court will rule on the case on 14th December, while the suspension of services will continue in the meantime, CoinDesk reported.