Kenya Insights

Tag: Wananchi Group Limited (Zuku)

  • Zuku Ordered to Pay Sh7.2M for Illegally Airing Kenyan Film Pwagu

    Zuku Ordered to Pay Sh7.2M for Illegally Airing Kenyan Film Pwagu

    Wananchi Group Limited, trading as Zuku, has been ordered to pay Sh7.2 million in damages for illegally broadcasting the Kenyan film Pwagu without authorization.

    The case, Kadi Media Limited vs Wananchi Group Limited, stemmed from a complaint by Kadi Media Limited and filmmaker Diana Mbogo, who alleged that Zuku infringed their copyright by airing Pwagu on its TV platform without consent.

    The claimants sought an injunction to halt further broadcasting, special damages of Sh2,217,951, general damages, and costs, citing unauthorized use of their audio-visual work.

    to this verdict began with a High Court order on November 4, 2024, transferring the case from Justice C.W. Meoli to the Copyright Tribunal.

    Despite Zuku’s initial challenge to the tribunal’s jurisdiction, a ruling on November 28, 2024, affirmed its authority under Section 26(3) of the Copyright Act and Article 169(1)(d) of the Constitution.

    Kadi Media provided robust evidence, including certificates from the Kenya Copyright Board and the Kenya Film and Classification Board, proving their ownership of Pwagu’s literary and audio-visual rights.

    Zuku admitted to airing the film, claiming it acquired the content from Sparks Corporate Solutions Limited, a third party that warranted no infringement on third-party rights.

    However, the tribunal found Zuku’s due diligence lacking, noting that the unsigned, undated agreement with Sparks held no legal weight.

    Furthermore, minutes from a June 2024 meeting revealed that Zuku aired unapproved content, undermining their defence.

    that Zuku violated Section 35 of the Copyright Act by broadcasting Pwagu without a valid license or assignment from Kadi Media.

    Despite a demand letter on May 30, 2024, Zuku continued airing the film, dismissing the claims as defamatory.

    The tribunal rejected Zuku’s reliance on Section 35(5)(b), which protects unaware infringers, as Zuku was aware of the copyright but relied on faulty third-party assurances.

    Citing precedents like Kimani v Safaricom Limited (2015) and Royal Media Services Limited v John Katana (2019), the tribunal awarded Kadi Media Sh2,217,951 in special damages for production and administrative costs, supported by extensive documentation.

    in general damages was granted to compensate for the harm caused by Zuku’s unauthorized broadcast to its wide viewership.

    However, exemplary damages were denied, as Zuku had ceased airing the film post-dispute.

    Costs and interest on the awarded sums were also granted, effective from the judgment date until fully paid.

  • Zuku Hit with Sh500K Fine for Spam Texts: Pandora’s Box Opens for Future Lawsuits

    Zuku Hit with Sh500K Fine for Spam Texts: Pandora’s Box Opens for Future Lawsuits

    Ex-Customer’s Victory Over Relentless Spam Texts Sparks Legal Avalanche for Kenyan Firms

    In a ruling that could redefine corporate accountability in Kenya’s digital age, internet provider Zuku has been ordered to pay a former customer Sh500,000 for bombarding him with unsolicited promotional messages years after he ditched their services.

    The penalty, issued by Data Commissioner Immaculate Kassait, not only exposes glaring gaps in data privacy compliance but sets the stage for a potential wave of lawsuits against Zuku and other firms flouting consumer rights.

    The case, stemming from a November 2024 complaint by ex-client Yasin Abukar, reveals a Kafkaesque ordeal. Abukar argued that despite repeatedly demanding—via calls, emails, and even showing up at Zuku’s offices—that the company delete his personal data and stop spamming him, the messages kept coming.

    “I felt harassed. They treated my privacy like an afterthought,” Abukar stated in his submission. His frustration deepened when Zuku’s listed customer service email bounced back as invalid, leaving him trapped in a corporate runaround.

    Zuku, owned by Wananchi Group, denied ever receiving Abukar’s requests, claiming a system audit showed no record of his pleas. But the Data Commissioner’s office uncovered a far thornier reality.

    An ODPC investigation found that the email address provided on Zuku Fibre’s website for data protection inquiries was inactive, making it difficult for Abukar to exercise his right to data deletion. Despite Zuku’s denial of receiving formal deletion requests, the ODPC found evidence that the company continued processing Abukar’s data and obstructed the investigation.

    The regulator ruled that Zuku Fibre violated Sections 26 and 40 of the Data Protection Act by failing to honor Abukar’s data deletion request, unlawfully processing his personal data, and providing an invalid contact channel for data protection inquiries.

    “The right to data deletion is fundamental, and organizations must comply with the law or face the consequences,” the ODPC stated.

    During a court-sanctioned raid last week, Zuku’s staff reportedly stonewalled investigators, refusing access to digital records and systems despite being presented with a search warrant.

    “Their lack of cooperation turned this into a witch hunt,” Kassait wrote, accusing Zuku’s directors of obstruction—a charge that could now land them in criminal court.

    A Precedent for “Data Vigilantes”

    The ruling, dated February 15, 2025, is more than a win for one aggrieved customer. It sends a seismic warning to Kenyan Zuku and other firms: ignore data deletion requests at your peril. With Kassait pushing for prosecutions beyond fines, companies risk both financial bleeding and reputational ruin.

    Legal experts predict a surge in similar cases

    “Consumers are waking up to their rights under the Data Protection Act. This verdict is a green light for others to demand respect—or sue,” says Nairobi-based privacy advocate Miriam Wanjiku on X.

    The timing couldn’t be sharper: Kenya’s data watchdog recently vowed to clamp down on foreign violators, signaling a no-nonsense era of enforcement.

    Zuku’s Mounting Woes

    The firm’s claim of innocence—“We found no trace of his complaints”—collapsed under scrutiny, with Kassait dismissing it as “convenient denials.” Worse, their defiance during the probe paints a picture of a company clinging to opacity in a transparency-driven market.

    Abukar’s lawyer, speaking anonymously, hinted at broader implications: “This isn’t just about spam texts. It’s about companies hoarding your data like gold long after you’ve left them. That ends now.”

    Zuku has 30 days to appeal, but the court of public opinion may already be leaning toward Kassait’s stance. As Kenyans increasingly guard their digital footprints, the message is clear: respect privacy, or pay the price—one lawsuit at a time.

    For consumers drowning in spam, Yasin Abukar’s fight is a rallying cry. For corporations? A chilling wake-up call: delete responsibly, or brace for the flood.

  • Elon Musk’s Starlink Propels To Top Internet Providers In Kenya

    Elon Musk’s Starlink Propels To Top Internet Providers In Kenya

    Tesla billionaire Elon Musk’s satellite internet firm Starlink has captured a 0.5 percent share of Kenya’s internet market in its first full year of operation in the country, amassing a subscriber base that totalled 8,063 users at the end of June this year, new data shows.

    Fresh statistics from the Communications Authority of Kenya (CA) indicate that the growth rate has propelled the multinational into the top ten list of dominant internet service providers (ISPs) in the country, enjoying an equal pie of the market with Vijiji Connect Limited, which launched operations in 2020.

    Safaricom maintained its firm grip on the market growing marginally to control a market share of 36.4 percent, up from 36.2 percent in June last year, followed by Jamii Telecommunications Limited (JTL), whose share grew to 24 percent from 23.7 percent last year.

    Wananchi Group Limited (Zuku), on the other hand, saw its market control shrink during the period to 17.5 percent from 21.6 percent last year.

    “Safaricom Plc reported the largest market share of 36.4 percent followed by Jamii Telecommunications Ltd and Wananchi Group at 24.0 and 17.5 percent respectively. Starlink Internet Services Kenya, which was licensed earlier in the financial year to provide satellite internet services, had a market share of 0.5 percent as of June 30, 2024,” wrote CA in its latest sector statistics report.

    Starlink, which is an outgrowth of Musk’s space technology firm SpaceX, operationalized services within the local market in late July last year, setting the stage for what analysts termed ‘a consequential industry disruption’ that would see the battle for the fast-expanding market intensify among the top ISPs.

    Satellite internet users

    Between April and June this year, CA notes, Kenya’s utilised satellite internet capacity – which reflects the total internet access speed that the technology can provide per second – increased rapidly to 840.448 gigabits per second (Gbps) up from 48.438 Gbps in the previous quarter, a more than 16-fold jump, courtesy of Starlink services uptake in the country.

    “Satellite subscriptions maintained an upward trend following the launch of Starlink services during the year, with 96.9 percent of satellite customers subscribed to speeds between 100 Mbps and 1 Gbps,” notes the industry regulator.

    The overall satellite internet subscriptions in the country grew monumentally during the year from 405 as of June last year to 8,324 at the end of the review period.

    “This growth is attributed to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year,” said CA.

    “This trend is expected to continue in the coming periods considering that this technology provides high-speed, low-latency broadband connectivity, especially in areas where internet is currently unavailable or unreliable.”

    The disclosures by the regulator point to a growing appetite among users for more personalised attention and quality services, with market disruption already taking shape as traditional players start exhibiting distress signs.

    In August this year, market leader Safaricom wrote a letter of protest letter to the CA asking it to review the policy of licensing independent ISPs in what was widely seen as an attempt to censor Starlink.

    In its petition, the telco argued that indiscriminate permit approvals to such firms could give rise to illegal connections and harmful interference to mobile networks.

    In what was seen as a veiled response by the government, President William Ruto, while on a visit to the US last month, backed Starlink’s operations in the country, saying that the firm’s conduct was in line with the State’s policy of deepening internet penetration and encouraging competition in the market.

    Price wars

    In an attempt to dodge a price war with the multinational, Safaricom last month increased its home fibre internet speeds by up to five times as part of efforts to protect revenues and guard its customer base.

    A major strength for Starlink against its competitors is its ability to deliver high-speed, low-latency internet to remote and previously underserved areas, making it an ideal product for Kenya’s rural settings where traditional Internet services are limited or unreliable.

    Since entering Kenya, Starlink has seen its operations model undergo a raft of amends as part of its strategy to net a wider base of subscribers.

    At the onset, the service had proved to be a deterrent due to its prohibitive cost, after it emerged that one needed at least Sh100,000 for installation, the bulk of which was the purchase price of the hardware kit at Sh89,000.

    The cost of the kit has since been reduced to Sh45,500.

    In June this year, the multinational introduced a 50 gigabyte (GB) monthly data package at a rate of Sh1,300, which is less than half the price of Airtel, which charges Sh3,000 for a similar package.

    Safaricom, on the other hand, sells a 47GB data package that includes 2,500 talk minutes and 5,000 SMS for Sh5,000.

    Last month, Starlink introduced a rental plan for the installation hardware kit, with users paying a monthly rate of Sh1,950 as opposed to a one-off purchase at Sh45,500, in addition to the Sh1,300 charge for the 50GB data plan or the Sh6,500 monthly service fee for an unlimited internet package.

    The firm has also lined up plans to launch new satellites with the ability to connect and deliver internet directly to subscribers’ mobile devices without the need for a hardware kit from next year.