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58% of M-PESA Transactions Are Now Free as Kadogo Drives Digital Growth
Safaricom says free small-value transactions dubbed M-PESA Kadogo at Safaricom, now account for 58 percent of all activity on the mobile money platform, highlighting the growing role of zero-rated transactions in driving financial inclusion across Kenya.
According to the company’s 2025/2026 financial results, M-PESA facilitated 17.1 billion free transactions during the year. The transactions included:
- Person-to-person transfers of KES 100 and below
- Lipa na M-PESA payments under KES 200
- Cash deposits at M-PESA agent outlets
- Airtime purchases through M-PESA
The initiative continues to support millions of low-income earners and small businesses by reducing the cost of accessing digital financial services.
Free Transactions Triple Usage
Safaricom PLC introduced the zero-rated charges during the COVID-19 pandemic after removing fees on small-value transfers and bank-to-M-PESA transactions.
Since then, the company says transaction volumes have tripled between 2020 and 2026.
During the last financial year alone, M-PESA processed:
- 46.4 billion transactions
- Worth KES 41.7 trillion
The figures further strengthen M-PESA’s position as a major driver of Kenya’s digital economy and financial inclusion agenda.
Peter Ndegwa, CEO of Safaricom PLC, said the initiative continues to make digital payments more affordable and accessible.
“With M-PESA Kadogo, our purpose is to make digital payments affordable for small-scale daily purchases and deepen financial inclusion,” he said.
He added that removing transaction fees has reduced barriers and accelerated adoption of digital payments across the country.
58% of M-PESA Transactions Are Now Free as Kadogo Drives Digital Growth
M-PESA Revenue Continues to Rise
Beyond transaction growth, M-PESA also recorded strong financial performance during the year.
The platform’s revenue grew by 13.4 percent to reach KES 182.7 billion, driven by increased activity in:
- Consumer payments
- Business payments
- Global payments
Consumer payments remained the largest contributor at KES 74.5 billion, followed by business payments at KES 56.7 billion.
The growth highlights M-PESA’s transition from a money transfer platform into a broader digital financial ecosystem supporting payments, savings, and business transactions.
Pochi la Biashara Sees Rapid Growth
One of the standout performers within the M-PESA ecosystem was Pochi la Biashara.
The product’s customer base grew rapidly:
- From 600,000 users in 2024
- To 1.1 million users in 2025
- To 2.2 million users in the last financial year
Revenue from the product also increased significantly:
- KES 800 million in 2024
- KES 2.2 billion in 2025
- KES 4 billion in 2026
The platform allows small business owners to receive payments while also investing overnight balances through Ziidi MMF.
Ultimately, Safaricom says the continued growth of M-PESA reflects rising adoption of digital financial services and the company’s ongoing commitment to expanding financial inclusion and economic empowerment across Kenya.
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