The average annual commission for M-Pesa agents plunged to a record low of Sh112,244 in the year ending March 2026, as intensifying competition among a growing agent network squeezes individual earnings.

Data from Safaricom reveals that the number of M-Pesa agents increased to 333,011 in the financial year, up from 298,890 the previous year and nearly double the 173,000 recorded in 2020. Despite the rise in agents, total commissions paid remained fairly stable at Sh37.38 billion, indicating that the average income per agent has fallen due to the expanding agent base.

Competition and Changing Consumer Habits

While M-Pesa continues to facilitate over 136 million daily transactions for 40.66 million customers, the average monthly commission per agent dropped to about Sh9,353, a figure that barely covers basic operational costs such as rent and wages.

The decline in earnings is compounded by reduced revenues from airtime sales, which have dipped following changes in consumer behaviour, including increased use of internet-based communication apps and direct airtime purchases via digital platforms.

Agents Diversifying Income Sources

Facing shrinking margins, many agents have expanded their services to include agency banking for banks like KCB, Equity, and Co-operative Bank, as well as offering Airtel Money services. This diversification helps agents tap into additional revenue streams and sustain their businesses amid reduced cash transactions.

Notably, Safaricom’s Lipa na M-Pesa and Pochi la Biashara services saw significant revenue growth, rising 21.7% and 86% respectively, reflecting increased usage of mobile payments beyond cash withdrawals.

Industry Implications

  • The rapid growth in agent numbers highlights the competitive pressures within Kenya’s mobile money ecosystem.
  • Declining per-agent commissions pose challenges for small businesses that rely heavily on agency income.
  • The trend underscores a broader shift towards digital payments, reducing cash dependency.
  • Agents’ adoption of multiple financial services under one roof is becoming essential to maintain profitability.

Safaricom’s transformation from a traditional telecom operator to a technology-driven firm is evident, with M-Pesa generating Sh182.74 billion in revenue in the year to March 2026, surpassing mobile data and voice income.