Utility Model
Muchiri & another v Co-operative Bank of Kenya & 2 others (Civil Appeal E1174 of 2023) [2025] KEHC 16788 (KLR) (14 November 2025) (Judgment)
Facts
Muchiri and Itesyl Technologies held Utility Model KE/UM/2020/1466 (Certificate No. 315), "Computer Implemented Banking System for Real Estate Management", designed to let landlords reconcile rent via Co-operative Bank's core banking APIs. After an API service agreement and joint testing with the bank, the bank allegedly launched its own "Open Banking Project" using the same features and licensed similar functionality to third parties. Itesyl sued for Ksh 216.5 million, alleging infringement; the bank counterclaimed for revocation of the utility model. This was an appeal from the Industrial Property Tribunal's dismissal (IPT Case No. E002 of 2021, judgment 5 October 2023).
Issues
Whether the respondents misappropriated or infringed the utility model; whether a permanent injunction should issue; and whether the utility model's registration should be revoked.
Rule
Industrial Property Act, s.2 (definition of utility model), s.103(3) (revocation grounds); the Tribunal and High Court relied on Sanitam Services (EA) Ltd v Rentokil (K) Ltd & another [2006] KECA 362 (KLR) on the burden of proving infringement, Kibo Capital Group Ltd & another v Safaricom PLC [2022] KEIPT 872 (KLR) and Akuon v Safaricom PLC & 2 others [2022] KEIPT 873 (KLR) on computer programs and business methods being outside patentable and utility-model subject matter, and Designers Guild v Russell Williams [2000] and Dedan Maina Warui v Safaricom [2014] KEHC 2948 on the idea/expression dichotomy.
Analysis
The Tribunal, and the High Court on appeal, found the invention was functionally dependent on the bank's pre-existing core banking system and APIs and could not operate independently. Because it relied on already-existing mechanisms rather than constituting an independent apparatus or configuration, the court held it was not a proper subject of utility-model protection and disqualified it from both infringement protection and continued registration, applying the same computer-program and business-method reasoning as in Kibo Capital v Safaricom.
Conclusion
Appeal dismissed; the Tribunal's dismissal of the infringement claim and revocation of the utility model were upheld; costs to the respondents.
Judgement available at kenyalaw.org.