Vodafone and Safaricom tested early versions of M-Pesa in Kenya as a pilot project. The trial helped prove that a mobile-phone account plus a cash-in/cash-out agent network could move money safely without a traditional bank branch. Lessons from the pilot shaped the full commercial launch.
Safaricom launched M-Pesa nationwide as a service to send, receive, and store money using a basic mobile phone and a PIN. The launch established a new kind of retail financial infrastructure: thousands of local agents acting like “human ATMs.” This milestone is widely seen as the start of Kenya’s modern mobile-money era.
In its first year, Safaricom expanded from a small set of initial agents to a much larger network, building national reach for cash deposits and withdrawals. This agent expansion was critical because most customers still used cash for daily life. The growing network helped M-Pesa move from an experiment to a mass-market payment channel.
The Central Bank of Kenya (CBK) released formal guidelines for agent banking, allowing banks to use third-party agents for some services. While M-Pesa was run by a mobile operator rather than a bank, the policy shift reinforced the broader move toward branchless finance. It also helped normalize agent-based delivery of financial services across the sector.
Kenya passed the National Payment System Act to provide a stronger legal framework for payment services and oversight. This mattered for mobile money because it clarified roles for regulators and set expectations for safety and reliability in national payment systems. The law was later brought into force, further formalizing the rules for large-scale digital payments.
Safaricom and Commercial Bank of Africa (CBA) launched M-Shwari, which let customers save and borrow directly from their phone using the M-Pesa menu. This expanded M-Pesa beyond transfers into credit and savings, using transaction history to support small, short-term loans. The move helped turn M-Pesa into a broader financial ecosystem rather than a single payment product.
Safaricom launched Lipa na M-Pesa to make it easier for businesses to accept customer payments directly from M-Pesa wallets. This step pushed M-Pesa from “person-to-person transfer” into everyday commerce, such as shops and services. Merchant acceptance increased the number of reasons to keep funds in a wallet instead of cashing out.
The National Payment System Act officially came into effect, strengthening the operational legal basis for payment instruments and providers. For Kenya’s fast-growing mobile money market, commencement supported clearer supervisory authority and standard-setting. This helped align rapid innovation with more formal national payment governance.
Safaricom introduced Fuliza, a mobile overdraft that lets customers complete M-Pesa transactions even when their balance is too low. This reduced failed payments and made the wallet feel more like a flexible account for daily use. It also increased the role of M-Pesa data and pricing in shaping short-term digital credit.
During the early COVID-19 period, transaction fees for low-value M-Pesa transfers were waived after coordination between CBK and payment providers. The goal was to reduce cash handling and keep small payments affordable while movement and contact were restricted. This moment showed how policy and pricing could rapidly shift payment behavior at national scale.
Safaricom and Vodacom completed a joint venture that acquired the M-Pesa brand and key product development/support rights from Vodafone. This shifted more control of strategy and platform evolution to the African operating companies. The change aimed to speed up product development and expansion across markets, including Kenya’s core ecosystem.
Safaricom launched the M-Pesa Super App, adding app-based features alongside SIM-toolkit and USSD channels. The strategy supported a shift toward smartphone services such as “mini apps,” while still serving users who rely on basic phones. This marked a major evolution from a transfer tool into a platform for many kinds of digital transactions.
Safaricom introduced M-PESA Go to extend supervised mobile money access to younger users aged 10 to 17. The product reflects how mobile money had become part of everyday household finance, including allowances, small purchases, and budgeting. It also signaled a focus on long-term ecosystem growth by onboarding future adult users early.
On M-Pesa’s 18th anniversary, Safaricom announced the Ziidi investment platform, including a money market fund option for customers. This step illustrates M-Pesa’s continued move from payments into wealth-building products, aiming to keep more financial activity within the mobile ecosystem. By this stage, M-Pesa had become not just a payment rail, but a distribution channel for multiple regulated financial services.
M-Pesa mobile money rollout and ecosystem in Kenya (2007–present)