Mobile money has transformed everyday life in Kenya.
Instead of visiting a bank for every transaction, millions of people can send and receive money, pay bills, buy airtime and make purchases using their mobile phones.
M-Pesa is the most recognisable mobile-money service in the country, but Kenya also has other digital financial services.
What Is mobile money?
Mobile money allows users to perform financial transactions through a mobile phone.
Common services include:
- Sending money
- Receiving money
- Withdrawing cash
- Buying airtime
- Paying bills
- Paying merchants
- Transferring money to banks
- Receiving payments for businesses
Sending money
One of the most common uses of mobile money is sending money to another person.
Before confirming a transaction, carefully check the recipient’s details.
If you send money to the wrong number, contact the provider promptly and follow the official reversal process where applicable.
Withdrawing cash
Mobile-money users can withdraw cash through authorised agents and other supported channels.
When withdrawing money:
- Confirm the agent’s details.
- Check the amount carefully.
- Count your cash before leaving.
- Keep your transaction message.
- Never disclose your PIN.
Paying bills with paybill
Paybill services allow customers to pay organisations directly through mobile money.
They are commonly used for services such as:
- Electricity
- Water
- Internet
- School fees
- Television subscriptions
- Insurance
- Other services
Always confirm the correct PayBill number and account/reference details before paying.
Paying businesses with till numbers
Businesses can accept mobile-money payments using merchant Till Numbers.
When paying, confirm the business name displayed before authorising the transaction.
Do not rely solely on a Till Number sent to you through an unverified message.
Buying airtime
Mobile money can be used to purchase airtime directly.
This makes it possible to top up your phone without visiting a shop or buying a physical scratch card.
Mobile money for businesses
Mobile money has become an important tool for small businesses.
Traders can use merchant services to accept payments from customers and keep records of transactions.
It is particularly useful for businesses that operate without traditional card-payment infrastructure.
Mobile money and bank accounts
Mobile money and banking services can work together.
Customers can move money between supported bank accounts and mobile-money wallets.
This allows people to keep savings in a bank while using mobile money for frequent transactions.
Mobile-money charges
Different transactions can attract different charges.
Fees may depend on the amount and type of transaction.
Because tariffs can change, check the current official tariff before relying on a particular figure.
How to avoid mobile-money fraud
Mobile-money fraud remains an important risk.
Remember these basic rules:
Never share your PIN.
Never share an OTP or authentication code.
Do not trust someone simply because they claim to be calling from your mobile network.
Do not follow suspicious links.
Do not send money to an unfamiliar number without verifying the recipient.
Fraudsters may create urgency by claiming that your account is blocked, you have won a prize or your transaction needs immediate confirmation.
What to do if you send money to the wrong person
Act quickly.
Keep the transaction message and contact the mobile-money provider through its official customer-service channels.
Do not rely on unofficial individuals claiming that they can recover your money.
Mobile money for everyday life
Mobile money is useful for many ordinary activities, including:
- Paying rent
- Sending money to family
- Paying school fees
- Buying food
- Paying utility bills
- Paying transport costs
- Receiving wages or business payments
- Making online purchases
Frequently asked questions
What is M-Pesa?
M-Pesa is a mobile-money service that allows customers to perform various financial transactions using their mobile phones.
Can mobile money replace a bank account?
For some everyday transactions it can reduce the need to use a traditional bank account, but mobile money and banking serve different purposes and can be used together.
Can I send money to a bank account using mobile money?
Supported mobile-money services provide various bank-transfer options. Check the current service menu and applicable charges.
What should I do if someone asks for my mobile-money PIN?
Do not provide it. Your PIN should remain confidential.