The growth of Safaricom has continued to benefit Kenyans through free transactions on M-Pesa services, boosting digital payments and financial inclusion across the country.

Small-value transactions, accounting for up to 58 per cent of total transactions, contributed significantly to the remarkable growth of M-Pesa under the M-Pesa Kadogo initiative during the 2025/2026 Financial Year.

In a press release issued by Safaricom, the Company announced that by May 7, the financial year had recorded 17.1 billion free transactions. This growth was driven by the zero-rated cost of mobile money transfers of up to Ksh100 and merchant payments below Ksh200.

Millions of Kenyans, especially small business owners, have been able to access digital financial services and participate in the digital economy through the free transactions enabled by M-Pesa Kadogo.

The initiative allows free person-to-person transfers between Ksh1 and Ksh100, merchant payments of up to Ksh200, cash deposits at M-Pesa agent outlets and airtime purchases through M-Pesa.

Between 2020 and 2026, the number of transactions tripled following the removal of charges, a decision initially introduced during the outbreak of the Covid-19 pandemic.

Overall, the M-Pesa platform processed 46.4 billion transactions valued at Ksh41.7 trillion ($322 billion) during the financial year, solidifying its position as the backbone of Kenya’s digital economy and enhancing participation in digital financial services.

Safaricom Chief Executive Officer Peter Ndegwa said the removal of transaction fees has reduced friction and accelerated the use of M-Pesa across the country.

“With M-Pesa Kadogo, our purpose is to make digital payments affordable for small-scale daily purchases and deepen financial inclusion,” he said.

Revenue from mobile financial transactions increased by 13.4 per cent to Ksh182.7 billion, supported by growth in consumer payments, business payments, and global payments.

Consumer payments contributed the largest share of M-Pesa revenue at Ksh74.5 billion, followed by business payments at Ksh56.7 billion, reflecting the platform’s shift from a money transfer service to a broader digital payment ecosystem.

Safaricom also reported strong growth in Pochi la Biashara, a mobile money solution for small businesses that has gained significant uptake since its launch in 2021.

Its customer base rose from 600,000 users in 2024 to 1.1 million users in 2025 before doubling again to 2.2 million users last year.

The service generated revenue growth from Ksh800 million in 2025 to Ksh2.2 billion and later to Ksh4.4 billion in the last Financial Year.

Pochi la Biashara also enables customers to grow their money by investing overnight balances in the Ziidi MMF.

This consistent growth demonstrates Safaricom’s commitment to advancing digital financial services, deepening financial inclusion, and promoting economic empowerment across Kenya.

M-Pesa, launched in Kenya in 2007 by Safaricom, has evolved from a simple money transfer platform into a broad financial ecosystem offering savings, credit, merchant payments, and international money transfer services.

• A Tell Media / KNA report / By James Mburu andJames Kabutu