Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

M-Pesa remains apple of Safaricom's eye

Article Image
Mobile financial services platform, M-Pesa, continues to be a major cash cow for Kenya's Safaricom with M-Pesa revenue growing 45.8% year-on-year (YoY) for the first six months of the financial year, following the return to charging for small peer-to-peer (P2P) transfers in January 2021.

The platform made small P2P transfers free in 2020 because of the COVID-19 pandemic, which bit into M-Pesa revenue last year, but revenue bounced back to 52.3 billion Kenyan shillings (US$467.4 million) in the half year to September 30, 2021.

Safaricom's first half results show that M-Pesa's total transaction value grew 51.5% YoY to KES13.7 trillion (US$122 billion) while volume of transactions grew 42% YoY to 7.3 billion.

Safaricom said that innovation in digital financial services has been a key growth driver for M-Pesa, which also launched its M-Pesa "super app" earlier this year.

"The pandemic dealt a major blow to the economy in 2020 but we are encouraged with the gradual recovery recorded across major sectors of the economy including agriculture, manufacturing and the tourism sector," said Safaricom CEO Peter Ndegwa.

Safaricom's service revenue for the half year grew 16.9% YoY to KES138.4 billion ($1.24 billion) supported by recovery in M-PESA revenue and improved consumer confidence and business activity in the economy.

Subscriber growth

Safaricom's active customers also ticked up 4.7% YoY to 31.75 million and M-PESA customers in Kenya increased 7.1% to 28.69 million.

In addition, the operator's customers are using more data; data customers using more than 1GB increased 26.7% to 6.8 million. The network also added 37.3% more 4G devices compared to last year.

All of this resulted in mobile data revenue growing 6.3%, while voice revenue also ticked up 3.2% YoY.

The group also saw improvements on the wholesale and enterprise side with fiber-to-the-home (FTTH) customers growing 17% to 153.4K while enterprise fixed customers grew 38% YoY to 44.9K.

Safaricom said its 4G, 3G and 2G population coverage now stand at 95.9%, 96.3% and 96.9%, respectively.

Ethiopia plans

Ndegwa said that Safaricom is still focused on launching its new operations in Ethiopia by April 2022, after it was granted a telecoms license by the government in May.

"We are looking forward to launching commercial operations as projected, while cognizant of the current evolving political conflict in Ethiopia, as we proceed with our plans adapting to and assessing the situation as it evolves," said Safaricom CEO Peter Ndegwa.

"For now, our priority is safety and security of the small number of employees that had already joined the organization. We hope for a fast and peaceful resolution to the current situation and we remain committed to taking telecommunications and digital services to the people of Ethiopia," he added.

Local media reported this week that Safaricom had evacuated some of its employees from Ethiopia because of armed conflict and civil unrest in the country.

Related posts:

*Top image is of Safaricom CEO Peter Ndegwa. (Source: Safaricom).

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Moya super app takes aim at SA fintech market

Super app Moya's fintech platform, MoyaPay, aims to be South Africa's most widely used mobile money payments platform.

Story

Hot startup of the month: Kenya's Shamba Pride

This month's hot startup, Shamba Pride, wants to revolutionize the rural agricultural trade ecosystem in Kenya by transforming agro-dealers into franchised 'DigiShops.'

More Innovation hub

Guest Perspectives

Story

Omdia View: April 2022

By Omdia Analysts

This month's Omdia View highlights indicate a shift to digital transformation and operational consolidation to maximize return on investments.

Story

Omdia View: March 2022

By Omdia Analysts

This month's Omdia summary of the biggest stories in the Middle East and Africa focuses on SA's spectrum auction and new submarine cables landing in Kenya and Togo.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Flash poll

All polls

Latest video

More videos

Archived webinars

Boosting Customer Experience in the Digital Age

From the first interaction to the last payment: convert leads into clients, drive loyalty and grow your bottom line.

The digital age has ushered in a new era of customer engagement. Consumer demands and expectations are higher than ever – where an affordable but seamless online experience is now the norm.

At a time when competition for your customers is fierce, ensuring a client journey that is tailored to their needs has never been more important. The ability to build these bespoke offerings starts with understanding, and that understanding is built on data.

This webinar will explore how gathering insight is key to growing and retaining a strong customer base; we’ll unpack how CRM platforms, mobile payment, lead capture, and online marketing are key factors in building a successful 21st Century digital business.

  • Customer Experience – understanding consumer expectations of today
  • What easy steps can you take to provide a complete, immersive digital customer experience?
  • How to leverage modern digital tools to build customer loyalty

More Webinars

Sponsored video

More videos

AfricaCom perspectives

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

Story

Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.

Story

How Poa Internet is unlocking meaningful connectivity in East Africa

Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

More AfricaCom perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up