Airtel Money, a mobile money service provider, has initiated a price war with Safaricom's M-Pesa in Kenya by reducing its transaction fees. This move is part of Airtel Money's strategy to expand its market share in the country. According to a prospectus filed by Airtel Mobile Commerce NV, the parent company of Airtel Money, the firm aims to leverage lower transaction fees, improved customer incentives, and rapid expansion of its agent network to gain market share.
The Kenyan mobile money market has been dominated by Safaricom's M-Pesa, which holds an 88.8 percent share of total subscriptions. As of June 2026, M-Pesa had 47.95 million users, while Airtel Money had 5.99 million users. However, Airtel Money has been gaining traction, increasing its market share from 2.8 percent in June 2023. The company operates in 13 sub-Saharan African markets, providing mobile wallet, payments, and other financial services to 53 million active users.
Airtel Money's strategy to gain market share focuses on offering lower transaction fees and superior customer incentives. The company recently launched Bizna Wallet, a low-cost product that provides small-scale traders with a simplified digital payment solution. The wallet was offered free of fees to attract merchants. Additionally, Airtel Money halved the costs on its other mobile money transactions, such as paybill payments and bank transfers.
In response to Airtel Money's price cuts, Safaricom revised its tariffs, effective August 7. The company raised the threshold of transactions on Pochi la Biashara that are not levied fees from Sh100 to Sh200 and halved the charges on payments to business tills and paybills. Safaricom's move indicates that it is aware of Airtel Money's strategy and is taking steps to protect and grow the market share of M-Pesa.
Safaricom's M-Pesa revenue grew 13.4 percent to Sh182.7 billion in the financial year to March 2026, accounting for 45.6 percent of the company's total revenue. The company's mobile data sales rose 14.4 percent to Sh83.3 billion, while earnings from fixed internet sales increased 12.2 percent to Sh20.2 billion. Voice revenue was up 1.3 percent to Sh81.8 billion in the period.
Airtel Mobile Commerce NV, the parent company of Airtel Money, has filed a prospectus ahead of the listing of its mobile money business in London. The company noted that there is still significant potential for mobile money growth in Kenya and other markets in which it operates. Mobile money total processed value (TPV) as a percentage of GDP in Kenya is 231 percent, three times higher than Sub-Saharan Africa's 66 percent.
The price war between Airtel Money and Safaricom's M-Pesa is expected to benefit consumers and drive the adoption of digital financial services. The competition may also lead to further innovations and improvements in mobile money services. Key players in the market are focused on expanding their distribution networks and improving their services to gain market share.
Key points
- Airtel Money cuts fees to rival Safaricom's M-Pesa in Kenya's mobile money market.
- Safaricom revises tariffs in response to Airtel Money's price cuts.
- The price war between Airtel Money and M-Pesa is expected to benefit consumers and drive the adoption of digital financial services.
