Safaricom is transforming M-Pesa from a mobile-money service into a comprehensive digital platform for Kenya's economy. The company aims to provide a range of financial services, including savings, investments, insurance, and business solutions. This strategic shift is part of Safaricom's vision to become a technology platform for everyday financial activity. M-Pesa has been a key driver of Safaricom's revenue growth, contributing 45.6% of the company's total service revenue.
In the year ended March 2026, Safaricom's financial services arm generated KSh182.7 billion in revenue, a 13.4% increase from the previous year. The M-Pesa platform processed 46.4 billion transactions worth KSh41.68 trillion, with an average of 127 million transactions per day. This scale of transactions underscores the infrastructure required to support the introduction of new financial products. The company's CEO, Peter Ndegwa, emphasized M-Pesa's role in connecting consumers, businesses, and financial institutions.
M-Pesa's credit portfolio grew significantly, with 18 million customers, a 117.9% year-on-year increase. Assets under management in wealth products also rose to KSh21 billion, reflecting rapid uptake of savings and investment offerings. The merchant ecosystem expanded to approximately 3.1 million merchants, an 81.5% increase, with merchant revenue climbing 35.8% to KSh13.3 billion. This growth indicates increasing business reliance on M-Pesa for payments and supplier settlements.
Safaricom is enhancing its super-app, which consolidates consumer and business services, with AI-driven features to personalize experiences and strengthen fraud detection. The app has 6.6 million active consumer users and 458,900 active merchants. The company continues to invest heavily in network upgrades, allocating US$400-500 million annually in Kenya, about half of which supports growing data and transaction volumes.
Safaricom's regional expansion includes Ethiopia, where M-Pesa's active customers rose 119.4% to 5.2 million. However, the venture still records losses, highlighting the financial demands of replicating the platform abroad. The company's strategic shift from a pure telecom operator to a technology platform is driven by the growing demand for digital financial services.
The expanded digital services require significant network investment, with Safaricom allocating substantial resources to support growing data and transaction volumes. The company's focus on AI-driven features and super-app development aims to enhance user experiences and security. M-Pesa's growth has been driven by its ability to adapt to changing consumer needs and preferences.
As Safaricom continues to evolve M-Pesa into a digital economy platform, the company faces opportunities and challenges in Kenya and beyond. With a strong track record of innovation and growth, Safaricom is well-positioned to play a leading role in shaping Kenya's digital economy. The company's progress will be closely watched by stakeholders in the financial services and technology sectors.
Key points
- Safaricom aims to become a technology platform for Kenya's digital economy, extending M-Pesa beyond payments into savings, investments, insurance, and business services.
- M-Pesa processed 46.4 billion transactions worth KSh41.68 trillion in FY 2026, with 127 million transactions per day.
- Safaricom allocates US$400-500 million annually in Kenya, about half of which funds network upgrades supporting growing data and transaction volumes.
