Kenya’s journey with M-PESA is a story of overcoming doubt, challenging norms, and believing in the power of innovation to change lives. Safaricom CEO Peter Ndegwa, in a recent interview with Jeff Koinange, took us back to M-PESA’s roots, unveiling the struggles, triumphs, and groundbreaking impact it has had on millions. What began as a mobile money platform has grown into a tool that underpins Kenya’s economy, empowers communities, and shapes the lives of people in ways few could have imagined. Here’s how it all unfolded.
The Early Days: From Skepticism to a National Movement
When M-PESA was first proposed, the concept seemed almost too ambitious. How could sending money over a mobile network be reliable, let alone secure? As Ndegwa explained, early skeptics in the government questioned M-PESA’s impact on the economy, fearing it might even destabilize currency flow.
Michael Joseph, Safaricom’s former CEO, was undeterred. He knew that M-PESA could make a difference. So when he sought approval from then-Finance Minister, the late John Michuki, Joseph didn’t just explain M-PESA’s concept—he demonstrated it. By using M-PESA to pay Michuki’s farm workers, Joseph provided undeniable proof of M-PESA’s practicality and efficiency. This single demonstration was pivotal in winning the support that M-PESA needed to move forward. And as Ndegwa puts it, “We could have given up.” But Safaricom’s persistence and commitment to innovation set the stage for M-PESA’s unprecedented success.
A Financial Revolution
Once approved, M-PESA took off, transforming Kenya’s financial landscape. By 2020, M-PESA’s Lipa na M-PESA service had onboarded 170,000 merchants. Today, that number has exploded to 700,000—a testament to the speed of Kenya’s digital transformation and the hunger for simple, effective payment solutions among businesses of all sizes. This growth highlights one of M-PESA’s core values: empowering businesses by providing them with accessible tools that simplify their operations.
With each new service—Fuliza for overdrafts, business credit partnerships, and options for salary and supplier payments—M-PESA is becoming a comprehensive financial ecosystem. For many Kenyan merchants, M-PESA is more than a payment method; it’s an essential business partner that keeps them competitive in a fast-paced, increasingly digital world.
Redefining Everyday Life
Perhaps the most striking testament to M-PESA’s reach is how it’s woven into daily life. In his interview, Ndegwa shared a humorous anecdote: Safaricom’s CFO, an expatriate, realized he didn’t even know the color of Kenya’s currency notes because he relies entirely on M-PESA. For Kenyans, M-PESA has made wallets nearly obsolete—cash is no longer king.
M-PESA is so embedded in Kenyan society that it’s not uncommon for people traveling abroad to forget their credit cards, assuming they can rely on mobile payments as they do back home. Such stories underscore how M-PESA has shifted Kenya’s financial culture to the point where it’s hard to imagine life without it.
M-PESA’s Heart: Social Impact
But M-PESA’s impact goes beyond financial convenience. It has become a crucial tool for social welfare and humanitarian aid, reaching Kenya’s most vulnerable populations. During crises like droughts or floods, M-PESA provides a direct way for aid agencies and donors to distribute funds to affected individuals. This rapid, efficient distribution method has proven indispensable in disaster response, allowing the government and NGOs to reach remote, underserved communities with critical support.
Ndegwa, who previously chaired the drought committee, shared how M-PESA enabled aid during severe droughts, reaching individuals and families directly. This application of M-PESA to support the most vulnerable showcases the platform’s potential as a social equalizer. It’s a reminder that innovation, at its best, doesn’t just serve the wealthy or tech-savvy but uplifts those who need it most.
M-PESA’s Global Legacy
It’s no surprise that M-PESA’s success has caught the world’s attention. Now a case study at Harvard and other prestigious institutions, M-PESA exemplifies how mobile technology can drive financial inclusion on a massive scale. Other countries are looking to Kenya as a model, hoping to replicate M-PESA’s success and create their own mobile-based financial solutions.
Safaricom’s mission with M-PESA has always been clear: inclusion, empowerment, and innovation. From the humble beginnings of mobile money transfers to enabling microcredit with Fuliza, M-PESA is a powerful example of how a simple idea, backed by persistence and vision, can transform a nation.
As Ndegwa eloquently puts it, M-PESA is “in the DNA of everyone” in Kenya. It has moved beyond being a financial tool to become a cultural cornerstone, a reflection of Kenya’s resilience and ingenuity, and an inspiring blueprint for financial empowerment around the world.