Safaricom’s mobile money service, M-Pesa, has experienced significant growth, achieving a remarkable Sh77.22 billion in revenues. This represents a 16.6% year-on-year increase, underscoring the continued strength of the platform in the ever-evolving mobile payments industry. Safaricom’s stellar performance in this sector highlights its pivotal role in Kenya’s financial ecosystem and the growing reliance on mobile money solutions for everyday transactions.
The increase in M-Pesa’s revenues is a direct result of a 10.7% rise in the total transaction value, which reached a staggering Sh20.85 trillion during the six-month period. This surge is a clear indicator of the growing trust and dependency on M-Pesa for a range of financial services, including transfers, bill payments, and merchant transactions.
One of the key drivers behind M-Pesa’s success is the improvement in the average revenue per user (ARPU), which saw a notable 13.1% growth year-on-year. This metric highlights the increased spending of individual customers on the platform, signaling deeper engagement with M-Pesa’s offerings.
Furthermore, Safaricom reported a significant 25.6% increase in chargeable transactions per active user, which rose to 37.37. This suggests that M-Pesa customers are using the platform more frequently, driven by a combination of ease of use, new features, and the growing number of services available.
In terms of customer growth, Safaricom reported an increase of 4.1% in one-month active M-Pesa users, bringing the total to 33.46 million. This figure reflects the wider adoption of mobile money, particularly among Kenya’s underserved populations who now have access to financial services at their fingertips. The number of M-Pesa agents also grew by 2.4%, reaching 266,071, further solidifying Safaricom’s expansive agent network that serves as the backbone for cash-in and cash-out services across the country.
Another notable aspect of the growth is the sharp rise in the number of “pochi tills”—Safaricom’s point-of-sale system for merchants. The number of these tills has more than doubled to 869,023, signaling the expanding adoption of mobile money for business transactions. Additionally, merchant overdraft customers grew by an impressive 72.9%, reaching 52,272. This increase reflects the growing role of M-Pesa in supporting small and medium-sized enterprises (SMEs) by providing them with access to crucial financial services, such as overdrafts, which help smooth cash flow challenges.
According to Safaricom’s CEO, Peter Ndegwa, the performance of new products such as “pochi la biashara” and merchant overdrafts has been exceptional, contributing significantly to the platform’s expansion. These products are designed to support SMEs, which are vital to Kenya’s economy. Safaricom’s commitment to nurturing these businesses has allowed it to remain at the forefront of Kenya’s mobile money landscape, while also promoting financial inclusion and economic growth.
Safaricom also reported a 21.7% growth in net earnings for the first six months of the year, driven by a 14% increase in group service revenue, which hit a record high of Sh181.4 billion. The Kenyan unit was the primary driver of this performance, with service revenue growing by 12.9% to Sh177 billion. This resulted in EBIT (earnings before interest and taxes) and net income rising by 18% to Sh79.2 billion.
Peter Ndegwa attributed this strong performance to Safaricom’s consistent execution of its strategy and its ability to adapt to the challenges posed by a competitive and often unpredictable market. Despite the difficulties, he expressed confidence in the company’s ability to continue delivering value to customers, leveraging technology to meet evolving needs.
As Safaricom celebrates 24 years of transforming Kenyans’ lives through connectivity and innovation, the company remains firmly focused on expanding its core business while exploring new avenues of growth. With a strong commitment to serving both individual customers and businesses, Safaricom is well-positioned to maintain its leadership in the mobile money space and continue driving Kenya’s digital economy forward.
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