Safaricom's next billion won't come from new customers

In a bid to drive growth, Safaricom, Kenya's largest telecommunications company, is making M-PESA payments cheaper and increasing mobile data allocations. But the real question is: who exactly is this strategy aimed at? The answer lies in the demographics of Safaricom's existing customer base. With most of Kenya's mobile users already on Safaricom's network, the company is now focused on persuading existing users to spend more time and money within the M-PESA ecosystem. This is the story of Safaricom's latest customer value proposition, Pata More, a Swahili name that translates to "get more".

Safaricom's M-PESA is the dominant force in Kenya's mobile money market, controlling 89.1% of the market share in March 2026. This is a staggering figure, far ahead of Airtel Money's 10.9% share. The company's latest move to lower the cost of making and accepting small-value payments is a clear indication that Safaricom is willing to do whatever it takes to keep its customers within the M-PESA ecosystem. The changes include doubling the threshold for fee-free payments made through Pochi la Biashara, its payment service for informal traders and sole proprietors. Customers can now send up to KES 200 ($1.55) free of charge, up from KES 100 ($0.77), while fees on larger transactions will be capped at KES 50 ($0.39) for 90 days.

So, what does this mean for Safaricom's bottom line? By making M-PESA payments cheaper and increasing mobile data allocations, Safaricom is essentially creating a win-win situation for both itself and its customers. Customers get more value for their money, while Safaricom gets to retain its existing customers and encourage them to spend more within the M-PESA ecosystem. This is a smart move, considering that acquiring new customers is becoming increasingly expensive and difficult. With relatively few new customers left to acquire, Safaricom's focus on customer retention is a strategic one.

Safaricom's Pata More initiative is designed as a long-term customer value proposition, rather than a seasonal promotion. This means that the company is committed to providing more value, convenience, and support to its customers in the long run. Customers are becoming more selective about their spending, and rivals are competing more aggressively on price. Safaricom's move to bundle services and offer more value to its customers is a response to these evolving customer needs. By doing so, Safaricom is positioning itself as a leader in the Kenyan telecommunications market, one that is committed to providing its customers with the best possible experience.

So, what does the future hold for M-PESA? With Safaricom's focus on customer retention, it's likely that M-PESA will continue to dominate the Kenyan mobile money market. The company's latest changes will make it easier for customers to use M-PESA, and the bundled services will provide more value to existing customers. A notable step by Safaricom, one that will likely pay off in the long run. As I see it, Safaricom's next billion will indeed come from making existing customers spend more, rather than acquiring new ones.

With its focus on customer retention and providing more value to existing customers, Safaricom is well on its way to achieving its next billion. The company's Pata More initiative is evidence of its commitment to customer satisfaction, and it's a move that will likely pay off in the long run. As the Kenyan telecommunications market continues to evolve, Safaricom is positioning itself as a leader, one that is committed to providing the best possible experience to its customers.