(Nairobi) – Safaricom has been temporarily restrained from promoting its M-Pesa services on Kenya’s Standard Gauge Railway (SGR) trains after the High Court issued an injunction in favor of City Eye Advertising Agency. Justice Peter Mulwa ruled that City Eye had presented a credible case, asserting that the telco’s actions infringed on its exclusive advertising rights.
City Eye Advertising Agency, owned by Zakayo Muchai Wainaina, holds a trademark certificate granting it sole rights to manage advertising inside and outside the SGR commuter trains. The agency claimed that Safaricom violated these rights by displaying M-Pesa advertisements on the trains.
In court, Mr. Muchai argued that Safaricom’s actions could cause irreparable harm to his firm that financial compensation could not address. Justice Mulwa concurred, stating, “The plaintiff has demonstrated a prima facie case and will suffer harm if this injunction is not granted. The balance of convenience favors the plaintiff.”
The dispute dates back to July 2023, when City Eye first filed its application. The advertising agency said it had approached Safaricom earlier with an offer to manage its advertising on the SGR but was turned down. Safaricom later entered into an agreement with Kenya Railways Corporation (KRC) and Digital Mara, a different advertising partner, to promote its products on the trains.
Safaricom denied any wrongdoing, asserting that it legally contracted Digital Mara for its advertising needs. The telco accused City Eye of omitting key details about Digital Mara’s involvement in its claim, suggesting that the lawsuit was retaliation for Safaricom declining City Eye’s proposal.
Despite Safaricom’s objections, the court upheld City Eye’s claim, awarding the agency legal costs and temporarily barring the telco from advertising on the SGR trains.
Key Details in Dispute
| Aspect | City Eye Advertising Agency | Safaricom’s Position |
|---|---|---|
| Trademark Rights | Holds exclusive rights to advertise on SGR trains. | Claims it partnered with Digital Mara under KRC approval. |
| Allegations | Safaricom infringed on its intellectual property rights. | Case is retaliation for not accepting City Eye’s proposal. |
| Court Ruling | Issued a temporary injunction favoring City Eye. | Opposed, citing contractual agreements with Digital Mara. |
Justice Mulwa’s ruling is the latest development in a growing dispute over advertising rights in Kenya’s transport sector. The matter is set to return to court for further hearings.