In Kenya, M-Pesa is a household name known not just by the banked and literate population but by almost everyone including the unbanked, young, and illiterate population.
Since its launch in 2007, M-Pesa has evolved from a simple money transfer service to a financial lifeline powering commerce, enabling entrepreneurship, and redefining how small businesses operate across the country.
From humble beginnings as a peer-to-peer transfer platform, M-Pesa has expanded into a robust financial ecosystem offering services such as merchant payments, savings, credit facilities, and international remittances.
Some of its financial solutions include M-Shwari, KCB M-Pesa lending service, Fuliza Overdraft facility, Ziidi Money Market Fund (MMF), and Ziidi Trader investment platform, among others.
The platform currently serves 40 million active users in Kenya and 60 million global customers, who rely on its services daily.
For small businesses, the transformation has been particularly profound. Traders who once operated on a strictly cash basis now have access to a secure, efficient, and widely accepted digital payment system through Lipa na M-PESA, and Pochi la Biashara services.
Safaricom data shows that as of 2025, Lipa na M-PESA had over 700,000 active merchant tills, with almost 1 million users conducting daily payments, while Pochi la Biashara wallet had 1.5 million small business users.
The figures underscore the rising demand for more secure, efficient, transparent and reliable financial services.
For Mary Wanjiku, a second-hand clothes vendor in Nairobi’s Gikomba Market, M-Pesa has not only reduced the risks associated with handling physical cash but also improved record-keeping and financial transparency.
“Before M-Pesa, I had to close my shop early to deposit money at the bank or risk theft. Now, most of my customers pay through their phones. It is safer, and I can track my sales easily,” she told Bizna Kenya Team.
Beyond payments, M-Pesa has also unlocked access to financial services that were previously out of reach for many entrepreneurs. Through integrations with banking and fintech products, users can save, borrow, and manage their finances directly from their mobile devices.
This has been instrumental in fostering business growth, particularly for informal traders who often lack collateral or formal credit histories.
James Otieno, a fish vendor in Nairobi’s Marikiti market, credits M-Pesa with helping him expand his business.
“I no longer have financial problems when running my business because I have so many loan options on M-Pesa. I can borrow on M-Shwari, KCB M-Pesa, or Fuliza; we also have the Taasi Pochi loan meant for pochi la biashara users,” Otieno remarked.
“Safaricom has really helped us small business owners because we are able to restock faster and serve customers without disruptions. The ability to separate business and personal finances has also been transformative,” he added.
The introduction of savings and investment products on M-Pesa has significantly deepened financial inclusion. Services such as M-Shwari and KCB M-Pesa have given small business owners access to formal financial tools without the need to visit a bank.
M-Shwari allows users to save money and earn interest while also providing access to microloans based on transaction history. KCB M-Pesa similarly offers savings accounts and credit facilities, enabling entrepreneurs to grow their working capital.
For many small traders, these products have bridged a long-standing gap in access to affordable financial services.
“I started saving small amounts daily on M-Shwari from my sales. After a few months, I was able to access a loan that helped me restock. I always ensure I repay on time to avoid penalties,” Otieno added.
The ripple effects extend beyond individual enterprises. By digitising transactions, M-Pesa has contributed to greater financial inclusion, bringing millions into the formal financial system.
Also Read: Safaricom reveals when phone number masking on M-Pesa transactions will take effect
