M-Pesa agents reap more commissions

A customer transacts at an M-Pesa Shop. [Courtesy]

Safaricom paid Sh28.2 billion in commissions to M-Pesa agents last year, up from Sh23.8 billion that it paid in 2019.

The company last year recorded Sh82.5 billion in M-Pesa revenue, two per cent lower than the Sh84 billion made in 2019, with the firm attributing this drop to the waiver of fees on cash transfers and Lipa Na M-Pesa transactions of below Sh1,000.  

The telco said the first half of the financial year saw an increase in activity on the M-Pesa system as customers took advantage of the free transfers and Lipa na M-Pesa transactions. 

“Total M-Pesa transaction value grew 58 per cent year-on-year to Sh22.04 trillion, while the volume of transactions grew 29.8 per cent year to 11.68 billion,” said the firm in its latest financial results. 

Overall, person-to-person transfers rose by 36 per cent from Sh2.6 trillion at the end of December 2019 to Sh3.6 trillion last year, with deposits and withdrawals standing at Sh3.7 trillion and Sh2 trillion respectively.