Safaricom has introduced a new feature called Shiriki Pay to its M-PESA platform, designed to simplify the process of collecting and making payments for shared expenses among groups. The launch comes as the Kenyan telecommunications giant faces heightened public and judicial scrutiny over its security protocols following a recent court ruling on a significant SIM swap fraud case. The feature allows a group administrator to create a payment pool for an event or bill, generate a unique code, and share it with participants, who can then contribute their share directly via M-PESA without needing to exchange personal phone numbers.

The company positions Shiriki Pay as a tool to enhance security and convenience for social and business transactions, from contributions for office parties to payments for group purchases. "Shiriki Pay is designed to make shared payments seamless and secure, reducing the hassle of collecting money from multiple people," a Safaricom spokesperson was quoted as saying in a product announcement. The service operates within the existing M-PESA infrastructure, which processes billions of shillings in transactions annually across Kenya and neighboring markets.

This product launch occurs against a backdrop of growing concern over digital financial fraud in Kenya. On July 13, a Kenyan court ruled that Safaricom and Diamond Trust Bank (DTB) must share the losses from a 4.4 million shilling cyber heist involving a SIM swap. The court found that both institutions failed in their duty to protect a customer, whose SIM card was illegally swapped, leading to the theft of funds from his bank account linked to M-PESA. The judgment underscores the legal liability that telecommunications companies and financial institutions can face for security lapses in integrated mobile money services.

The fraud case, detailed in court documents and media reports, involved a sophisticated scheme where fraudsters orchestrated a SIM swap on the victim's number, gaining control of his M-PESA profile and the linked bank account. The court determined that Safaricom's procedures for verifying a customer's identity before executing a SIM swap were insufficient. This ruling aligns with a broader trend in Kenyan jurisprudence, where courts are increasingly holding banks and telcos jointly liable for losses stemming from SIM swap fraud, a common vector for theft in the region's vibrant digital finance ecosystem.

Separately, consumer warnings have circulated regarding 'M-PESA prompt' scams, where fraudsters trick users into approving transaction requests sent via the M-PESA prompt system. While not directly linked to the SIM swap case, these scams highlight the ongoing challenges of securing a platform used by tens of millions. Safaricom typically advises customers never to share their PINs or approve suspicious prompts.

The introduction of Shiriki Pay can be seen as part of Safaricom's continuous effort to expand the utility and security features of M-PESA, which remains the cornerstone of Kenya's digital economy and a model for mobile money across Africa. However, the simultaneous legal and reputational pressures from the fraud case illustrate the complex environment in which fintech innovations are deployed, where enhancing convenience must be carefully balanced with robust consumer protection measures. The company has not publicly commented on whether the new feature includes specific security enhancements developed in response to recent fraud judgments.