First published 23 March, 2025
Image: NMG
A recent report highlighted a significant decline in market share for Safaricom’s M-PESA over several quarters, with Airtel Money showing growth during the same period. This shift in market dynamics indicates a potential change in the mobile money landscape, raising questions about Safaricom’s response to competitive pressures.
Despite the challenges faced, M-PESA has not adjusted its pricing structure in response to the changing market conditions, leading to concerns about the company’s strategy and priorities. The lack of proactive adjustments to fees may indicate a focus on maximizing revenue rather than addressing user needs.
The market environment in Kenya, characterized by low trust and high costs, drives consumers to scrutinize services and seek value in their financial transactions. Airtel Money’s competitive pricing and user-friendly options have resonated with cost-conscious users, highlighting a potential shift in consumer preferences.
Mobile money services have become integral to daily financial management for many Kenyans, with Airtel Money’s straightforward fee structure appealing to users looking for affordability and transparency. In contrast, M-PESA’s complex pricing model may no longer align with the needs of the majority of consumers.
While alternative services like Equity Bank’s Equitel and various fintech startups are emerging, Airtel Money’s recent market share growth suggests a growing preference for more cost-effective options among users. Safaricom’s delayed response to market signals and pricing concerns may further drive users towards competing platforms.
Profit motives over customer needs
Safaricom’s approach to pricing and market dominance reflects a strategic focus on shareholder returns, with M-PESA serving as a key revenue stream for the company. The reluctance to adjust fees significantly may stem from a desire to protect profitability and market position, potentially at the expense of user satisfaction.
While M-PESA has made adjustments to transaction fees over the years, the perception of high costs persists among users, raising concerns about the company’s responsiveness to user feedback. Safaricom’s emphasis on financial performance and regulatory compliance may overshadow the need to address user concerns promptly.
The disparity between user expectations and Safaricom’s actions underscores a disconnect between corporate priorities and consumer needs. The company’s perceived focus on investor interests rather than user experience may drive users towards alternative platforms that better align with their financial realities.
The emergence of Airtel Money as a viable alternative to M-PESA highlights a broader trend in the mobile money market, where users are seeking more affordable and user-centric services. Safaricom’s stronghold on the