Kenya: MPesa the Lifeline of Safaricom as The Carrier Records More MPesa Users than Mobile Users for The First Time.

For the first time in its history, Safaricom’s M-Pesa is no longer just a feature of its mobile network, it’s the main event. The mobile money service now has more active users than the telecom giant’s traditional mobile subscribers, marking a pivotal moment for the company and for Kenya’s digital economy.

• Safaricom’s active M-Pesa users have surpassed its mobile subscribers for the first time, reaching 37.9 million.
• M-Pesa now generates 44% of Safaricom’s total service revenue, out-earning voice and data combined.
• The growth is driven by new digital services, merchant solutions, and a major platform overhaul to improve reliability.
• Regulatory discussions about splitting M-Pesa from the core telecom business are gaining momentum, creating a complex future for the fintech giant.

M-Pesa is Now Safaricom’s Lifeline

It’s a milestone that quietly reshapes the narrative of African fintech. For years, M-Pesa was the crown jewel of Safaricom. Now, it’s the entire treasure chest. According to a report from TechCabal’s Emmanuel Paul, “For the first time, more Safaricom customers now rely on its M-Pesa mobile money service than on its traditional mobile network.” This isn’t just a headline, it’s a fundamental shift, confirmed by Safaricom’s own H1 FY26 investor presentation.

The numbers don’t lie. The company reported 37.9 million one-month active M-Pesa users, edging out the 37.5 million mobile subscribers in the same period. It’s a slim margin, but one that speaks volumes about where the company’s future lies. M-Pesa is no longer just a way to send money, it’s a daily utility woven into the fabric of Kenyan life.

What’s Fueling This Breakneck Growth?

So, what’s behind this surge? It’s a mix of strategic execution and relentless innovation. Safaricom CEO Peter Ndegwa pointed to the company’s direction, stating, “We remain focused on executing our strategy through segment-led execution and integrated solutions.” This strategy is clearly paying off. The expansion of digital services, new solutions for the 2.4 million businesses that accept M-Pesa payments, and a focus on affordability for small “Kadogo” transactions have all lowered the barrier to entry and boosted adoption across the board.

At the heart of this growth is a significant technological leap. As detailed in a deep dive by TechTrendsKE, Safaricom recently completed a massive overhaul of the M-Pesa platform. This wasn’t just a minor update. Journalist Johnstone Kereu wrote, “The upgraded M-PESA platform sits at the centre of this turn, built to support scale, limit outages and widen the range of everyday digital actions that customers can complete without friction.” This investment in a more robust and scalable backend has been crucial, especially after instances like the major outage that left millions stranded.

M-Pesa Out-Earns Voice and Data

The financial impact of M-Pesa’s dominance is staggering. The mobile money service now accounts for 44% of Safaricom’s total service revenues. Bringing in Sh88.1 billion ($676.9 million), it has officially surpassed the combined earnings from data, voice, and SMS. This cements its position not as a side-hustle, but as the primary engine of Safaricom’s profitability.

This financial muscle is powered by innovations that keep M-Pesa ahead of the curve. Features like shared wallets for families, advanced merchant tools, and the quiet integration of machine learning for fraud detection are making the platform indispensable. This turn towards AI-driven security is becoming a key differentiator in a world increasingly threatened by digital scams.

Recommended Tech

As M-Pesa leans heavily on AI to protect its users, securing your own digital life has never been more important. The TechBull recommends Aura for its all-in-one digital security, which helps protect you from financial fraud, identity theft, and online threats with a single, easy-to-use service.

The Regulatory Crosshairs

With great power comes great scrutiny. M-Pesa’s sheer size has not gone unnoticed by regulators. The Kenyan government is actively considering a major shake-up. Treasury Secretary Njuguna Ndung’u was quoted by Bloomberg as saying, “The plan to split Safaricom into three separate units—its core telecom business, a tower company, and the mobile money giant M-Pesa—is in motion.”

This move is intended to foster competition and reduce the systemic risk of having a single entity control so much of the country’s financial plumbing. However, not everyone is on board. Vodacom, which owns a significant 40% stake in Safaricom, has voiced its opposition to a full spin-off, citing the value it provides to shareholders and customers as an integrated service. The outcome of this debate will undoubtedly shape the future of both Safaricom and Kenya’s broader fintech scene.

A Digital Giant at a Crossroads

As Safaricom celebrates its 25th anniversary, it finds itself at a defining moment. As noted in a report by The Star, the company is looking ahead to its “Vision 2030” strategy, with a focus on technology-driven growth and expansion into new markets like Ethiopia. Ndegwa captured the sentiment, calling the latest results, “a strong set of results, and a solid start to our Vision 2030 strategy cycle.”

The voices from the ground tell the real story. The 2.4 million businesses that rely on M-Pesa for daily transactions are a testament to its indispensability. From bustling Nairobi markets to remote rural villages, it’s the platform that keeps the economy moving. For these small and medium-sized enterprises, managing operations and reaching customers has become much simpler.

Recommended Tech

For the millions of businesses built on M-Pesa, efficiency is key. The TechBull recommends Make.com, a powerful no-code platform that allows SMEs to automate their workflows, connect different apps, and save countless hours without needing a developer.

Safaricom’s dilemma is also its greatest opportunity. It is no longer just a telecom company, it is a digital financial behemoth. Navigating the regulatory landscape while continuing to innovate will be its greatest challenge. The path forward demands constant agility, particularly as it pushes for cross-border expansion and fends off the ever-present threat of sophisticated cybercrime. One thing is clear, M-Pesa’s journey is far from over, and its next chapter will be written not just in Kenya, but across the continent.