This archive report was first published on 25 August 2021.
Kenyan courts have been dealing with a growing number of cases involving individuals who have been jailed for refusing to refund money accidentally sent to them via M-Pesa. One such case is that of Esther Karimi Muthoni, who was sentenced to two years in prison for failing to refund Sh135,000.
On July 14, Muthoni received Sh271,200 in her M-Pesa agency account from Bakar Hussein Mohamed, who had accidentally sent the money while setting up his business. Muthoni withdrew half the amount and spent it immediately, leaving Mohamed with no choice but to file a complaint with the police.
Senior Principal Magistrate Philip Mutua had ordered Muthoni to pay a Sh200,000 fine for defrauding Mohamed of Sh135,000, or to serve two years in prison as an alternative. Unable to raise the fine, Muthoni was taken to Lang'ata Women's Prison, where she will now spend two years if she fails to raise the fine imposed by the court.
Another case is that of Cyrus Nzoka Maithya, who was sentenced to three months in prison for refusing to refund Sh16,463. Maithya received the money from Harriet Karimi, who had accidentally sent it to him on November 3, 2020. Maithya refused to refund the money, leading to his arrest and conviction.
According to the Computer Misuse and Cybercrimes Act, which was signed into law by President Uhuru on May 16, 2018, it is illegal for individuals to withdraw or withhold money accidentally sent to them electronically. The law covers banks, mobile money, and other forms of electronic payments.
Despite the law, many individuals have been convicted of theft for refusing to refund accidentally sent money. In one such case, Embu resident Margaret Njeri was sentenced to six months in prison in December 2017 for withdrawing Sh27,140 accidentally sent to her by Richard Mbui.
