Safaricom Is Pushing M-PESA Deeper Into Kenya’s Retail Investing Market

Why It Matters

The move positions M‑PESA as a full‑service financial platform, threatening traditional banks’ deposit and wealth‑management businesses and accelerating financial inclusion among Kenya’s younger, mobile‑savvy consumers.

Key Takeaways

• Ziidi fund assets doubled to KES 18.7bn ($145m) in FY26
• M-PESA revenue hit KES 182.7bn ($1.41bn), 13.4% growth
• Active users near 41 million; transaction value $323 bn
• Safaricom launched Ziidi Trader for mobile stock trading
• Merchant count rose 71% to 3.1 million, boosting cross‑selling

Pulse Analysis

M‑PESA’s evolution from a simple money‑transfer service to a comprehensive financial ecosystem reflects Safaricom’s strategic ambition to capture more of the Kenyan consumer’s financial lifecycle. By more than doubling assets in the Ziidi fund and introducing Ziidi Trader, the company is leveraging its massive user base—about 41 million active accounts—to offer retail investors a low‑cost entry point to listed securities. This integration of payments, savings, and investing under a single mobile brand not only deepens customer stickiness but also creates data synergies that can power personalized financial products.

The rapid expansion puts pressure on Kenya’s traditional banks, which have long dominated deposits, lending, and wealth management. With M‑PESA now accounting for 45.6% of Safaricom’s service revenue and merchant connections up 71%, banks face an erosion of their deposit base as consumers gravitate toward the convenience of mobile‑first solutions. Younger Kenyans, in particular, are shifting away from branch banking, favoring the immediacy of mobile platforms for saving, borrowing, and investing. This trend opens a sizable market gap for fintech firms, but Safaricom’s scale—bolstered by its telecom infrastructure—gives it a competitive moat few can match.

Looking ahead, Safaricom’s FY27 roadmap promises broader financial services, including insurance, cross‑border payments, and credit, further blurring the line between telecom and banking. The company’s ability to bundle these services with its existing payment ecosystem could accelerate financial inclusion while reshaping Kenya’s financial services landscape. Competitors will need to innovate or partner to retain relevance, as M‑PESA’s integrated approach sets a new benchmark for mobile‑centric wealth creation in emerging markets.