Massive free transactions have propelled the growth of M-PESA

Over the years, Safaricom’s digital wallet, M-PESA has become a household name not only in Kenya but also in Africa and other parts of the world especially in Kenya Diaspora areas.

Beyond the remarkable growth in transaction volumes and value, one of M-PESA’s most momentous milestones in the last financial year (2025-2026) was the continued growth of small-value transactions, known at Safaricom as M-PESA Kadogo. 

Under the initiative, mobile money transfers of K sh100 and below and merchant payments of K sh 200 and below are zero-rated. In the 2025/2026 financial year, whose results were announced on May 7, 2026 the initiative facilitated 17.1 billion (B) free transactions, accounting for 58 per cent of all M-PESA activities.

For millions of Kenyans, particularly low-income earners and small businesses, M-PESA Kadogo continues to break down financial barriers by enabling free small-value transactions, expanding access to digital financial services and strengthening participation in the formal digital economy.

The free transactions include person-to-person (P2P) transfers of between K sh 1 and K sh 100, Lipa na M-PESA payments below K sh 100, cash deposits at M-PESA agent outlets and airtime purchases through M-PESA.

The decision to remove the charges was made in the wake of COVID-19 in March 2020, during which time the charges on bank-to-M-PESA and transfers below K sh1,000 had been removed. 

For the company, the effect of the removal of charges was a tripling in the number of transactions between 2020 and 2026. 

Consequently, the Safaricom’s M-PESA platform processed 46.4 B transactions worth K sh 41.7 trillion (Trn) during the last financial year, reinforcing its position as the backbone of Kenya’s digital economy while accelerating financial inclusion for millions across the country.

“With M-PESA Kadogo, our purpose is to make digital payments affordable for small-scale daily purchases and deepen financial inclusion. The removal of transaction fees has reduced friction and accelerated the usage of M-PESA across the country,” affirms Safaricom’s CEO, Peter Ndegwa.

The mobile financial services platform recorded a 13.4 per cent  growth in revenue to K sh 182.7 B, driven by strong double-digit growth across consumer payments, business payments and global payments.

Consumer payments remained the largest contributor to M-PESA revenue at K sh 74.5 B, followed by business payments at K sh 56.7 B, highlighting the platform’s evolution from a money transfer service into a broad digital payments and financial ecosystem.

One of the key highlights in the consumer business is the remarkable growth of Pochi la Biashara, which has expanded significantly over the past year. Since its launch in 2021, the product has continued to gain strong traction over the last two financial years. The customer base grew from 600,000 users in the 2024 financial year to 1.1 million (M) the following year, before doubling to 2.2 M in the last financial year.

Revenue growth has been equally impressive, rising from K sh 800 M in 2024 to K sh 2.2 B the following year, and reaching K sh 4 B in the last financial year.

Pochi la Biashara customers can also invest overnight balances in Ziidi MMF, enabling their money to grow.

The sustained growth of M-PESA reflects the increasing adoption of digital financial services and Safaricom’s continued commitment to advancing financial inclusion, digital access and economic empowerment across Kenya.#…