Safaricom Sued Over Ai Use In Customer Service And
img_tag = ("Safaricom faces a constitutional challenge over its use of artificial intelligence in customer service and financial transactions, with a High Court petition arguing the telco's AI systems violate Kenyans' fundamental rights.
The case, filed by digital rights activists, targets Safaricom's customer service chatbot 'Zuri' and AI algorithms used in M-PESA lending decisions. Petitioners argue these automated systems deny customers due process when making critical financial determinations and handling service complaints without human oversight.
At the heart of the legal challenge lies Kenya's constitutional guarantee to fair administrative action. The petition claims Safaricom's AI systems make decisions affecting millions of Kenyans without transparency, accountability, or meaningful avenues for appeal when automated decisions go wrong.
The timing proves significant as Kenya positions itself as East Africa's fintech hub. M-PESA processes billions of shillings daily, while Safaricom's customer base exceeds 40 million subscribers. Any ruling restricting AI use could reshape how telecommunications and financial service providers operate across the region.
Legal experts note the case represents Kenya's first major constitutional test of AI governance. The petition argues that automated decision-making in essential services like mobile money requires human oversight to protect citizens' rights to dignity and fair treatment under Article 25 of the Constitution.
Safaricom's AI systems have drawn criticism before, with customers complaining about loan rejections without clear explanations and chatbot responses that fail to resolve complex billing disputes. The company maintains its AI improves service efficiency and fraud detection capabilities.
The case reflects growing global concern about AI accountability in financial services. Kenya's financial sector increasingly relies on algorithms for credit scoring, fraud detection, and customer service – making this lawsuit a potential precedent for the entire industry.
The High Court will determine whether Kenya's Constitution requires human oversight in AI-driven decisions affecting citizens' economic rights. A ruling favoring petitioners could force Safaricom and other service providers to restructure their automated systems, while rejection might accelerate AI adoption across Kenya's digital economy.