What is M-Pesa? Complete Guide to Kenya's Mobile Money Revolution
M-Pesa is one of the world's most successful mobile money services, transforming how millions of Kenyans send, receive, and manage money. If you're sending money to Kenya, understanding M-Pesa is essential.
What is M-Pesa?
M-Pesa (M for "mobile," Pesa is Swahili for "money") is a mobile phone-based money transfer and financial services platform. Launched in Kenya in 2007 by Safaricom, it allows users to:
- Store money on their phone
- Send money to other users
- Pay for goods and services
- Pay bills
- Access loans and savings
- Withdraw cash at agents
How M-Pesa Works
The Basics
- Register: Get a Safaricom SIM card, register at an agent
- Deposit: Add cash at any M-Pesa agent
- Transfer: Send money to any phone number
- Withdraw: Get cash at any agent
No Bank Account Needed
M-Pesa works without:
- Bank account
- Internet connection
- Smartphone (works on any phone with SMS)
This is why it revolutionized financial access in Kenya.
The Agent Network
M-Pesa has over 200,000 agents across Kenya:
- Small shops
- Supermarkets
- Gas stations
- Dedicated M-Pesa kiosks
Agents are everywhere—even in remote villages.
M-Pesa by the Numbers
| Metric | Figure |
| Active users in Kenya | 30+ million |
| Monthly transactions | 400+ million |
| Agents in Kenya | 200,000+ |
| Transaction value (annual) | $300+ billion |
| Countries operating | 8 |
Why M-Pesa Matters for Diaspora
For Sending Money Home
- Instant delivery: Money arrives in seconds
- Wide reach: Recipients everywhere in Kenya
- Convenience: No bank visit needed
- Usable immediately: Pay, transfer, or withdraw
How International Transfers Work
When you send via Sendwave, Remitly, or WorldRemit:
- You send USD from your country
- Provider converts to KES
- Provider's partner deposits to recipient's M-Pesa
- Recipient gets SMS notification
- Money is immediately available
What M-Pesa Can Do
1. Send Money
- To other M-Pesa users
- To bank accounts
- To other mobile money (limited)
2. Receive Money
- From other M-Pesa users
- From international transfers
- From businesses
3. Pay for Things
- Lipa na M-Pesa: Pay at shops
- Paybill: Pay businesses and bills
- Buy Goods: Till number payments
4. Pay Bills
- Electricity (KPLC)
- Water bills
- TV subscriptions (DSTV, etc.)
- Insurance
- School fees
5. Financial Services
- M-Shwari: Savings account
- Fuliza: Overdraft facility
- KCB M-Pesa: Loans
- M-Pesa Global: International transfers
M-Pesa Fees and Limits
Transfer Fees (Sending to Another M-Pesa)
| Amount (KES) | Fee (KES) |
| 1-100 | Free |
| 101-500 | 7 |
| 501-1,000 | 13 |
| 1,001-1,500 | 23 |
| 1,501-2,500 | 33 |
| 2,501-3,500 | 53 |
| 3,501-5,000 | 57 |
| 5,001-7,500 | 78 |
| 7,501-10,000 | 90 |
| 10,001-15,000 | 100 |
Withdrawal Fees (at Agent)
| Amount (KES) | Fee (KES) |
| 1-100 | 11 |
| 101-500 | 29 |
| 501-1,000 | 29 |
| 1,001-1,500 | 29 |
| 1,501-2,500 | 29 |
| 2,501-3,500 | 52 |
| 3,501-5,000 | 69 |
| 5,001-7,500 | 87 |
| 7,501-10,000 | 115 |
Transaction Limits
| Limit Type | Amount (KES) |
| Per transaction | 150,000 |
| Daily transaction | 300,000 |
| Balance limit | 300,000 |
International M-Pesa Transfers
Services That Send to M-Pesa
| Service | Speed | Cost |
| Sendwave | Minutes | Low |
| Remitly | Minutes | Low |
| WorldRemit | Minutes | Medium |
| Western Union | Minutes | High |
What Recipient Needs
- Active M-Pesa account
- Registered phone number
- Phone with SIM card
M-Pesa Security
Built-in Security
- PIN required for all transactions
- Transaction confirmations via SMS
- Transaction limits
- Agent verification
Protecting Your M-Pesa
- Never share PIN
- Don't follow links in SMS (phishing)
- Verify agents (legitimate kiosks)
- Check messages (transaction alerts)
- Report issues to Safaricom immediately
If Something Goes Wrong
- Wrong number transfer: Contact Safaricom immediately
- Fraud: Report to police, Safaricom
- Lost phone: Call Safaricom to suspend M-Pesa
M-Pesa vs. Traditional Banking
| Feature | M-Pesa | Traditional Bank |
| Account opening | Minutes, free | Hours/days, fees |
| Branches needed | No (agents) | Yes |
| Minimum balance | None | Often required |
| Transfer speed | Instant | Hours-days |
| Accessibility | Any phone | Urban-focused |
| Working hours | 24/7 | Limited |
Common M-Pesa Terms
- Paybill: Business payment number
- Till Number: Merchant payment
- Lipa na M-Pesa: "Pay with M-Pesa"
- Fuliza: Overdraft service
- Agent: Cash-in/cash-out location
- Float: Agent's cash inventory
M-Pesa for Businesses
Accepting M-Pesa
Businesses can:
- Get Paybill number
- Get Till number
- Integrate via API
Why Businesses Use It
- Customers prefer it
- Lower cash handling
- Instant payment receipt
- Integration with accounting
M-Pesa's Impact on Kenya
Financial Inclusion
Before M-Pesa (2007):
- 27% of Kenyans had financial services access
After M-Pesa (2023):
- 83% of Kenyans have financial services access
Economic Impact
- Lifted ~2% of Kenyan households out of poverty
- Enabled small business growth
- Created 200,000+ agent jobs
- Reduced cost of remittances
Frequently Asked Questions
Do I need M-Pesa to receive international transfers?
It's the most convenient option, but some services also offer bank deposit or cash pickup.
Can M-Pesa be used outside Kenya?
M-Pesa operates in Tanzania, DRC, Mozambique, Ghana, Egypt, Lesotho, and Afghanistan—but accounts are country-specific.
What's the maximum I can receive internationally?
Same as M-Pesa limits: 150,000 KES per transaction, 300,000 KES daily.
Is M-Pesa safe?
Yes, it's regulated by the Central Bank of Kenya and has strong security measures. Billions of dollars flow through it safely every year.
What if my recipient doesn't have M-Pesa?
They can register in minutes at any Safaricom agent with their ID. It's free and quick.
Conclusion
M-Pesa transformed financial services in Kenya and remains the best way to send money there:
- Instant: Money arrives in seconds
- Universal: Everyone in Kenya uses it
- Convenient: No bank account needed
- Affordable: Lower fees than alternatives
- Reliable: Proven system since 2007
When sending money to Kenya, choosing M-Pesa delivery ensures your recipient gets funds quickly and conveniently.
Send money directly to M-Pesa using our transfer comparison tool.