Free small-value transactions have emerged as one of the biggest drivers of growth for Safaricom’s M-PESA platform, helping millions of Kenyans embrace digital payments for everyday use.
During the 2025/2026 financial year, Safaricom processed 17.1 billion free transactions under its M-PESA Kadogo initiative, representing 58 per cent of all activity on the platform. The initiative allows customers to send KES100 and below at no cost, while merchants can receive payments of up to KES200 free of charge.
The zero-rated transactions cover person-to-person transfers, small Lipa na M-PESA payments, cash deposits at agent outlets and airtime purchases made through M-PESA.
Originally introduced during the COVID-19 pandemic to encourage cashless payments, the waiver of charges on low-value transactions has significantly transformed usage patterns. Safaricom says the number of transactions on the platform has tripled between 2020 and 2026 following the introduction of the initiative.
In the latest financial year, M-PESA handled 46.4 billion transactions valued at KES41.7 trillion, underlining its central role in Kenya’s digital economy and the growing adoption of mobile financial services across the country.
Safaricom CEO Peter Ndegwa said the initiative was designed to make digital payments more accessible for everyday purchases while expanding financial inclusion.
“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,” he said.
M-PESA revenue grew by 13.4 per cent to KES182.7 billion during the year, supported by strong growth in consumer payments, business transactions and international payments.
Consumer payments remained the largest contributor to revenue at KES74.5 billion, while business payments generated KES56.7 billion, highlighting the platform’s continued evolution beyond money transfers into a broader digital financial ecosystem.
Safaricom also recorded strong growth in Pochi la Biashara, a product designed for small businesses and informal traders. The service grew from 600,000 users in the 2024 financial year to 1.1 million in 2025 before doubling again to 2.2 million users in the latest financial year.
Revenue from the product also rose sharply, climbing from KES800 million in 2024 to KES2.2 billion in 2025, before reaching KES4 billion in the last financial year.
Users on Pochi la Biashara can also invest their overnight balances in Ziidi MMF, allowing them to earn returns on funds held within the ecosystem.
The continued expansion of M-PESA reflects the growing reliance on digital financial services in Kenya as more individuals and businesses turn to mobile platforms for payments, savings and everyday transactions.
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