TECNO on May 15, 2026 launched a suite of smartphone-based artificial intelligence (AI) tools in Nairobi that it says can operate without an internet connection, positioning the move as a response to high data costs and patchy connectivity that limit technology use for many Kenyans.

The company said the tools were launched at the University of Nairobi and are designed for everyday use cases including schoolwork support, basic health information searches and small business record-keeping performed directly on a user’s handset.

“AI should not be only for expensive devices. It should help a student revise, a trader track sales, a parent translate information, or a creator make better content,” said Elvis Ndekwe, TECNO AI Product Operations Officer. “Our goal is to make AI simple, useful, and available to more Kenyans”.

TECNO cited findings from research firm Omdia, saying high data costs and weak network signals often prevent Kenyans from adopting new technology. In response, the firm said it has built its AI features to run “on-device”, meaning processing is done locally on the phone rather than sending data to remote servers over the internet.

According to TECNO, running these functions on the handset is intended to allow users to access tools even when they have no airtime or data bundles, a common constraint for households and micro-businesses that rely on prepaid mobile services.

Tools aimed at informal trade, learning and health information

TECNO said the release focuses on three practical areas: small business support, education and healthcare information.

For small businesses, the company said the AI can act as a “Virtual Consultant” by reading payment messages and SMS to generate automatic record-keeping and M-PESA-linked money summaries. The firm said this is meant to help traders track sales and manage cash flow offline, potentially lowering reliance on third-party bookkeeping apps that require connectivity.

In education, TECNO said students can use its “Ella AI assistant” to summarise long documents and YouTube videos into shorter study notes. The company characterised the tool as an always-available study aid that continues to function while offline.

For healthcare, TECNO said its system provides voice-guided health tips and support in local languages, with the aim of helping families access wellness information without travelling long distances to clinics. The firm did not provide clinical validation details, and it did not specify whether the content is reviewed by medical professionals.

Local language support and camera features

TECNO also said a key part of the rollout is local language recognition. The company said the system has been trained on local data to recognise Swahili and Sheng’, and to interpret code-switching—mixing local languages with English within the same sentence.

In addition, TECNO said its “Universal Tone” camera feature is intended to capture natural skin tones for people with darker complexions in varied lighting conditions such as markets and streets. The firm said the feature addresses a longstanding issue where camera software can misrepresent darker skin tones.

Why it matters for Kenya’s mobile and digital economy

Kenya’s digital economy is heavily mobile-led, with smartphones serving as the primary computing device for many consumers and micro-enterprises. Features that function without internet connectivity could appeal to users facing intermittent network coverage or seeking to reduce spending on data bundles, particularly in the informal sector where day-to-day cash management is critical.

The emphasis on SMS and payment message parsing also reflects how deeply mobile money is embedded in Kenyan commerce. If widely adopted, offline tools that structure transaction information could increase basic financial record-keeping among micro and small enterprises—an area often cited as a barrier to accessing formal credit.

Outlook

TECNO did not disclose pricing, device models supported, or a rollout timeline beyond the launch event. Market uptake is likely to depend on which handsets receive the features, how well the tools perform across Kenya’s languages and usage patterns, and user confidence around how sensitive SMS and payment information is handled on-device.

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.