58% of M-PESA Transactions Are Now Free as Kadogo Drives Digital Growth
Advertisement 58% of M-PESA Transactions Are Now Free as Kadogo Drives Digital GrowthSafaricom 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 companys 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 belowLipa na M-PESA payments under KES 200Cash deposits at M-PESA agent outletsAirtime purchases through M-PESAThe initiative continues to support millions of low-income earners and small businesses by reducing the cost of accessing digital financial services.Free Transactions Triple UsageSafaricom 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 transactionsWorth KES 41.7 trillionThe figures further strengthen M-PESAs position as a major driver of Kenyas 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 GrowthM-PESA Revenue Continues to RiseBeyond transaction growth, M-PESA also recorded strong financial performance during the year.The platforms revenue grew by 13.4 percent to reach KES 182.7 billion, driven by increased activity in:Consumer paymentsBusiness paymentsGlobal paymentsConsumer payments remained the largest contributor at KES 74.5 billion, followed by business payments at KES 56.7 billion.The growth highlights M-PESAs transition from a money transfer platform into a broader digital financial ecosystem supporting payments, savings, and business transactions.Pochi la Biashara Sees Rapid GrowthOne of the standout performers within the M-PESA ecosystem was Pochi la Biashara.The products customer base grew rapidly:From 600,000 users in 2024To 1.1 million users in 2025To 2.2 million users in the last financial yearRevenue from the product also increased significantly:KES 800 million in 2024KES 2.2 billion in 2025KES 4 billion in 2026The 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 companys ongoing commitment to expanding financial inclusion and economic empowerment across Kenya.The post 58% of M-PESA Transactions Are Now Free as Kadogo Drives Digital Growth appeared first on Africa Business News.
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