Safaricom Plc said its M-PESA Kadogo initiative—under which selected low-value transfers and payments are free—processed 17.1 billion zero-rated transactions in the 2025/2026 financial year, representing 58% of all activity on the mobile money platform. The company disclosed the figures following the announcement of its 2025/2026 financial results on May 7.

Under M-PESA Kadogo, person-to-person transfers of KES 100 and below and merchant payments of KES 200 and below are zero-rated, Safaricom said. The free transactions also include cash deposits at M-PESA agent outlets and airtime purchases through M-PESA, according to the company’s statement.

The latest disclosure provides a window into how Kenya’s biggest payments rail is increasingly being used for small, frequent transactions—an area that influences merchant acceptance, customer stickiness and the broader pace of digitising day-to-day commerce.

Safaricom said the decision to remove certain charges was initially made in the wake of the COVID-19 period, when charges on bank-to-M-PESA and transfers below KES 1,000 had been removed. “For the company, the effect of the removal of charges was a tripling in the number of transactions between 2020 and 2026,” Safaricom said.

Overall, Safaricom reported that M-PESA processed 46.4 billion transactions worth KES 41.7 trillion in the last financial year. The company said the volume and value of transactions underscore M-PESA’s central role in Kenya’s digital economy.

“With M-PESA Kadogo, our purpose is to make digital payments affordable for small-scale daily purchases and deepen financial inclusion. The removal of transaction fees has reduced friction and accelerated the usage of M-PESA across the country,” said Peter Ndegwa, Safaricom CEO.

Safaricom said mobile financial services revenue rose 13.4% to KES 182.7 billion, attributing the performance to “strong double-digit growth across consumer payments, business payments and global payments.” Consumer payments were the largest contributor at KES 74.5 billion, followed by business payments at KES 56.7 billion, according to the company.

The company also highlighted growth in Pochi la Biashara, a product it positions for small traders and informal businesses. Safaricom said the customer base increased from 600,000 users in the 2024 financial year to 1.1 million the following year, before doubling to 2.2 million in the last financial year. Revenue from the product rose from KES 800 million in 2024 to KES 2.2 billion the following year, reaching KES 4 billion in the last financial year, Safaricom reported. The company added that Pochi la Biashara customers can invest overnight balances in Ziidi MMF.

For Kenya’s payments market, the scale of zero-rated micro-transactions points to intensifying competition around affordability and everyday merchant payments, particularly for low-income users and micro and small enterprises. The growth in Pochi la Biashara, alongside the continued expansion of Lipa na M-PESA usage at lower ticket sizes, also signals rising demand for tools that separate personal and business funds and provide basic value-added services such as short-term investment.

Looking ahead, Safaricom’s disclosures suggest that transaction volumes may continue shifting toward higher-frequency, lower-value payments as pricing and product design push for deeper usage in daily commerce. The company is expected to provide further detail on M-PESA’s segment performance and product roll-outs in subsequent investor updates tied to the 2025/2026 results.

Safaricom Plc and Indonesia’s Indosat Ooredoo Hutchison (IOH) have signed a partnership to collaborate on artificial intelligence (AI) use cases spanning customer experience, digital financial services and network investment planning, the companies said in a joint statement issued on March 17, 2026 in Barcelona.

Under the agreement, the two telcos said they will work on “advanced AI-driven decisioning” to support more proactive customer engagement, including predictive care to detect and resolve network issues before customers are affected, more relevant product recommendations for prepaid users, and conversational AI tools for customer support.

The partnership also includes collaboration around mobile money and broader digital financial services. IOH said it will draw on Safaricom’s operational experience in mobile financial services—built around M-PESA—to strengthen “resilience, security, and personalization” of digital financial journeys, including AI-powered fraud and risk management and improving payment reliability during peak periods.

The announcement comes as telecom operators increasingly deploy AI to manage network complexity, improve service quality and protect digital payments from fraud. For Kenya, where mobile money infrastructure is deeply embedded in everyday commerce, AI-driven fraud detection and reliability initiatives are closely watched by banks, merchants and regulators seeking to reduce losses and maintain customer trust in digital transactions.

In addition to customer and fintech-related initiatives, the companies said they will explore AI-led insights to improve how IOH plans and invests in its network. The statement referenced “CNX-based Smart CAPEX” and the use of AI to make capital expenditure decisions more demand-driven, with a focus on “high-growth and underserved areas.” No financial terms of the partnership were disclosed, and no monetary figures were provided to convert into Kenyan shillings.

Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, said the collaboration is intended to translate strategy into deployable outcomes. “This partnership with Safaricom is about moving from aspiration to action,” Sinha said. He added that the companies are focused on “delivering innovations that customers can genuinely feel from smarter networks and safer digital transactions to more personal and intuitive experiences,” according to the statement.

Peter Ndegwa, Chief Executive Officer of Safaricom PLC, said the partnership brings together the firms’ respective strengths. “Our partnership with Indosat is built on our respective strengths, their bold AI‑native transformation and our deep experience in building Africa’s most trusted digital and financial ecosystem,” Ndegwa said. He added that the collaboration aims to support “smarter networks and safer transactions” and contribute to “inclusive digital economies,” according to the statement.

Industry-wide, the initiative signals growing cross-market collaboration between operators seeking to industrialise AI across core telecom functions—customer care, network operations and digital financial services—rather than limit AI deployments to pilots. In Kenya and the wider East African market, the emphasis on fraud and risk management reflects sustained pressure on mobile money providers to strengthen controls as transaction volumes grow and fraud techniques evolve.

The companies also said they will collaborate on talent and leadership development to support AI transformation. Planned initiatives include building “AI-fluent executives,” developing “Business–AI Translator roles,” and enabling cross-organisational learning and short-term secondments to speed up skills transfer.

Next steps and timelines for specific deployments were not provided. The firms said the partnership will focus on practical use cases, suggesting pilots and phased rollouts may follow as the parties identify areas where AI tools can be implemented across customer operations, digital finance and network planning.

Small business vendors working around Naivasha during the 2026 WRC Safari Rally reported an increase in sales as thousands of spectators travelled to rally stages in the lakeside town, according to a media statement shared for publication. Traders interviewed in the statement said the event created a seasonal surge in demand for merchandise and food, while mobile credit and digital payments helped them manage stock and transactions.

The Safari Rally, which returned to Kenya in 2021, has become a recurring commercial peak for micro and small enterprises that follow the circuit to Naivasha. The statement describes vendors travelling from towns including Nakuru, Nairobi, Thika and Kiambu to set up temporary stalls near spectator stages such as Sleeping Warrior, Kedong and Hell’s Gate.

Ayub Mwangi, a tailor based in Nakuru, said he shifts to selling rally-related merchandise during the event, including kites, vuvuzelas and hats. “I have never missed a rally since it returned to Kenya in 2021,” Mwangi said. “Every year I travel to Naivasha because the business here is good. I cannot say exactly how much I make each day, but I always go home happy. A single kite sells for around KES 500, which is more than I might make in a day from tailoring.”

Mwangi said he used a Taasi Pochi loan to increase working capital ahead of the rally. “I needed extra capital to buy enough merchandise for the crowds, so I took a Taasi Pochi loan to boost my business since I didn’t have sufficient funds for stock. The support has truly paid off,” he said.

The statement said Taasi Pochi is a type of Pochi La Biashara loan that allows Safaricom merchants to access instant credit of between KES 1,000 and KES 250,000, available via *USSD 334# or the M-PESA app, with repayment periods of seven, 14 or 30 days.

Food vendors also reported stronger demand at key stages. Maria Wanjiru, who runs Shiro Nyama Choma in Roysambu, Nairobi, said she changed her product strategy after an earlier attempt selling soft drinks. “This is my second year coming to the rally,” Wanjiru said. “Last year I tried selling sodas and it did not work very well. This year I decided to focus on nyama choma and the response has been amazing.”

Wanjiru said she relied mainly on M-PESA payments. “At this event, I am mostly using Lipa Na M-PESA, specifically Buy Goods. It makes business smoother because customers can pay quickly, and I don’t have to worry about looking for change when things get busy,” she said. Her assistant, Job Ogamba, attributed the stronger trade to higher footfall. “The turnout has been incredible,” Ogamba said. “There are so many people coming through the stages. Events like this really create opportunities for small traders.”

For younger traders, the rally offered an alternative income channel. Ian Juma, a 25-year-old from Thika, said he paused boda boda work to operate a mobile snack cart selling smokies, boiled eggs, tea and soda. “In Thika I sell a smokie or egg for about KES 25, but here the demand is much higher,” Juma said, adding that he moved between stages to follow the crowds.

Not all vendors experienced peak-year gains, according to the statement. Joel Macharia of Linkers Butchery in Kiambu said business was “steady” compared with earlier years but still beneficial for traders. “Some of my friends have done extremely well this year,” Macharia said. “Large events like this always bring opportunities.” He added that digital payments were increasingly important for security and convenience in crowded environments.

For Kenya’s business landscape, the rally’s spillover effects underscore how major sports and tourism events can support micro-enterprises through temporary jobs, logistics demand and cashflow for informal traders. The emphasis on mobile credit and digital acceptance also highlights the role of fintech tools in helping small merchants handle short, high-volume trading windows—particularly when working capital constraints limit the ability to stock in advance.

Looking ahead, traders interviewed in the statement indicated the rally weekend is now built into their annual planning, from early travel and site selection to financing and payment setups. As the WRC Safari Rally continues on Kenya’s calendar, Naivasha is likely to remain a focal point for seasonal enterprise tied to spectator-driven spending.