Safaricom M-PESA growth surges as transaction value hits Sh41.7 trillion

Safaricom PLC has posted a strong performance in its mobile money unit, with M-PESA recording higher transaction activity and increased earnings driven by wider use of digital payments across consumers and businesses. The results, shared during the FY26 financial update on Thursday, show continued expansion of the platform as it deepens its role in everyday financial transactions.

The company reported that the total value processed through M-PESA climbed to Sh41.7 trillion, supported by 46.4 billion transactions over the period. This marked steady growth in usage as more customers shifted to mobile-based payments for both small and large transactions.

Payments revenue rose by 17.7 percent, now contributing 74.4 percent of total M-PESA income. The growth was mainly supported by increased activity in low-value transactions and broader adoption of digital payment solutions across the ecosystem.

Group Chief Finance and Innovation Officer Dilip Pal attributed the performance to continued investment in the platform and expansion of services.

“M-PESA business remains robust, supported by the investments we have made and the ecosystem we have built.”

Safaricom PLC noted that its revenue composition has continued to shift over time as the service evolves. Over the past five years, reliance on traditional revenue streams has dropped from 67 percent to 61 percent. At the same time, income from withdrawals has declined from 38 percent to 20 percent.

Financial services linked to M-PESA, including credit, insurance, and wealth products, grew by 19.1 percent year-on-year. The company said this was the strongest performance in the segment in three years, supported by increased customer engagement and new product uptake.

Transaction volumes also expanded strongly, rising by 25.1 percent to 46.4 billion. Non-chargeable transactions accounted for 57.8 percent of total activity, reflecting a continued push toward more affordable access to services.

A major contributor to this growth was the rise in “Kadogo” transactions, which cover small payments of up to Sh100 for individuals and Sh200 for merchants. These now represent 39 percent of consumer payments and 56.8 percent of business payments, with growth rates of 40 percent and 30 percent respectively.

Safaricom PLC said the trend reflects its focus on affordability and inclusion, with 68.3 percent of all transactions now falling under free or non-chargeable categories.

Merchant payments also expanded, supported by increased adoption among both formal and informal traders. The total merchant network grew to 3.1 million, a 71.4 percent increase year-on-year. Revenue from this segment rose by 35.8 percent, making it one of the key drivers of overall payments growth.

Financial services continued to show strong momentum, with the number of customers accessing credit rising to 18 million, more than double previous levels. Wealth management services also expanded, with assets under management reaching Sh21 billion, supported by 2.2 million users.

The Super App ecosystem added further momentum to performance. Active users on the consumer platform increased by 40 percent to 6.6 million, while merchant usage also grew. Combined, the apps contributed about a quarter of the incremental M-PESA revenue during the year.

Alongside the operational performance, Safaricom PLC announced a proposed dividend of Sh2.00 per share for FY26, the highest in its history. The payout, which includes both interim and final dividends, amounts to Sh80.13 billion in total shareholder returns.

Since FY09, the company has returned Sh692.25 billion to shareholders, including Sh280.06 billion over the last five years, reinforcing its position as one of the region’s most consistent dividend-paying firms.