(Ecofin Agency) – Safaricom launched M-Pesa in Kenya in 2007. Since then, the platform has diversified its services beyond simple money sending and withdrawals and has even opened up internationally. As of March 31, 2024, it had 32.41 million subscribers.
Kenyan mobile phone company Safaricom reported revenue of 139.9 billion Kenyan shillings ($1.08 billion) for its mobile money service M-Pesa in the 2024 financial year (April 1, 2023 – 31 March 2024). This represents a growth rate of 1087.6% compared to the financial year 2011 (April 1, 2010-March 31, 2011) where the service generated Sh11.78 billion.
This revenue growth was notably supported by increasing adoption of mobile money services. Over the period, the number of M-Pesa customers increased from 13.8 million to 32.41 million, an increase of 134.8%.
Safaricom has implemented strategies favorable to this. The company has invested in expanding its network coverage and agent network. It has also diversified the services provided by the platform beyond simple sending and withdrawing money: payment, credit, savings, international transfer. The company has also signed strategic partnerships with companies, online commerce platforms, public administrations, etc.
Over the years, M-Pesa has established itself as one of the pillars of Safaricom’s growth. In 2011, M-Pesa’s revenues represented 12.42% of the 94.83 billion shillings in turnover generated by the telecoms company. By 2024, mobile money revenue increased to 41.31% of the Sh338.57 billion generated by the company.
In terms of prospects, Safaricom aims to advance M-Pesa into a platform offering wealth management services, diversified credit and savings solutions, among others. “In the short to medium term, we see significant growth opportunity in the area of international and global remittances. Additionally, we are accelerating growth in the lending areas, where we will continue to offer consumers short-term credit facilities. Our strategic intention is to use M-Pesa as a platform to develop these business aspects,” Safaricom said in its financial results for the 2024 financial year.
Isaac K. Kassouwi
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05/13/2022 — Kenya: In 15 years, M-Pesa has established itself as the engine of Safaricom’s growth
