Safaricom has implemented a new policy preventing M-Pesa users from sending money to unregistered individuals.
This policy extends to users of Airtel Money and T-Kash, operated by Telkom, impacting a broad spectrum of mobile money services in the country.
Via its X official account, the country”s leading telecom provider, clarified that M-Pesa users can no longer conduct transactions with different mobile money providers like Airtel and T-Kash, discontinuing the ability to send money to unregistered Safaricom customers, a service previously allowed.
While M-PESA has not explicitly detailed the reason behind this policy change, it is speculated to be a security measure, aimed at addressing potential risks associated with unregistered SIM cards being used for untraceable mobile money transactions.
As of September 2023, Kenya reported 38.1 million mobile money subscriptions, with M-Pesa holding a significant market share of 96.5% in Q2 2023, followed by Airtel Money (3.4%) and T-Kash (0.1%).
Despite attempts to promote mobile money interoperability, Airtel Money and T-Kash have struggled to gain traction, possibly due to their limited cash withdrawal and deposit center network.
Notably, Safaricom’s M-Pesa service has faced recent outages, prompting complaints on social media platforms.
