In many parts of the world, financial inclusion remains a challenge with millions of people unable to access traditional banking services.
However, mobile money platforms like Safaricom’s M-Pesa, which was rolled out 18 years ago, have revolutionised how people manage their finances.
In an exclusive interview with the Star, Safaricom CEO Peter Ndegwa ruled out any possibility of separating from the mother firm, saying that the two are joined at the hip.
“People should not even bother about how M-Pesa and Safaricom are organised. They should say, do I get the services that I need? And is it empowering me to live the life that I want? And is it allowing me to run my business in the right way?’’ Ndegwa said.
When it comes to M-Pesa, from sending money to loved ones to paying bills or even saving, the service has bridged the gap, particularly in Kenya and Ethiopia, where mobile money has become a lifeline for many.
But behind every successful mobile money transaction is a group of unsung heroes—M-Pesa agents and dealers—who make the system work.
These agents are the backbone of the M-Pesa network, and without them, the service would not function as seamlessly as it does.
The heart of M-Pesa: M-Pesa agents
M-Pesa agents are small business owners, often running small shops, kiosks or stalls in the marketplaces.
One of their primary responsibilities is registering new M-Pesa customers.
For many Kenyans, this is their first experience with mobile money, so agents play a critical role in explaining how to send money, pay for goods or withdraw cash.
M-Pesa agents also manage cash deposits and withdrawals for registered users. For someone unfamiliar with the system, the agents jump in to quickly process a deposit or withdrawal.
They must also ensure that they educate customers on the service and have compliance with Safaricom’s Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.
These measures help protect both the customer and the broader financial system from fraud and misuse.
Agents take on the responsibility of maintaining the integrity of the system, making sure that their customers are using the service safely and securely.
Additionally, agents are expected to brand their outlets in line with Safaricom’s guidelines. This is not just about logos or signage- it is about creating a recognisable, trusted environment where customers know they can access reliable services.
To be an M-Pesa agent, it’s not just about having a phone or an outlet.
Prospective agents must register as a limited company with at least three outlets, ensuring that they have the necessary infrastructure and capacity to serve their communities effectively.
Nancy Muthoni, who runs an M-Pesa business, narrated how she ventured into the business in early 2008.
She was presented with the idea to become an agent and after consulting with Safaricom, she used Sh300,000 capital to open M-Pesa shops in three different provinces: Nairobi, Rift Valley and Central Kenya
She admits that this was challenging but she had to push it.
“It wasn’t too difficult for us,” she said.
“We travelled extensively, scouting for ideal locations, setting up shops and applying for M-Pesa lines to get the business running.”
M-Pesa agents must also demonstrate that they have been in business for a minimum of six months, proving that they can handle the responsibility that comes with being an agent.
For many, becoming an M-Pesa agent is more than just a business—it is about being part of a larger movement that empowers people.
It is about giving someone the chance to send money back home to their family, to pay for school fees or to receive life-saving funds in an emergency.
Eighteen years since Muthoni started the M-Pesa business, she believes it has positively impacted countless lives and significantly contributed to Kenya’s economy.
“As a businesswoman, M-Pesa has had a huge impact on my life. I was once employed but that changed. The same goes for many other agents,” she says.
Additionally, M-Pesa has boosted the economy because most Kenyans have embraced it, she says. Today, hundreds of people work under Muthoni as sub-agents in various parts of the country, creating employment opportunities for many.
“As an agent, I own outlets not just in my locality but across the country. This has positively impacted many people working under me, and other agents now have a source of livelihood,” she says.
M-PESA dealers: The power behind the scenes
While agents are the frontliners, M-Pesa dealers work quietly behind the scenes to ensure that everything runs smoothly.
They provide agents with the float (electronic money) that is required for transactions and ensure agents are well-trained to operate the system properly.
To become an M-Pesa dealer, the process is more complex.
Dealers must provide a certificate of incorporation, proving they are a legitimate business entity, and ensure their agents are fully compliant with Safaricom’s policies.
They are also responsible for ensuring that agents have sufficient float to meet customer demand. If an agent runs out of float, the dealer steps in to ensure they are replenished quickly, so service isn’t interrupted.
Dealers are also responsible for conducting audits of outlets before they begin operating.
This ensures that agents meet the necessary standards and are set up to offer secure services.
Super-agents and how they ensure M-Pesa transactions flow smoothly
Super-agents are large-scale agents who have the ability to manage float for multiple smaller agents.
They serve as a sort of "bank" for agents, making sure that there is always enough liquidity to handle customer transactions.
Super-Agents can deposit or withdraw float for other agents, ensuring that everything remains balanced
They also work with banks to manage float deposits and withdrawals, offering more flexibility for agents who may not have the necessary funds to top up their float on their own.
Some banks offer the services only to agents with bank accounts at their institutions, including Co-operative Bank, Diamond Trust Bank (DTB) and Barclays Bank.
Dr Esther Muchemi, a trailblazer M-Pesa dealer, has become the backbone of Safaricom’s distribution network, and it was clear that her influence was pivotal in their success.
“My success as a dealer wasn’t just about selling a product,” Muchemi said.
“It was about understanding the market, finding innovative ways to reach customers and providing excellent service. Safaricom trusted me with their brand, and I didn’t take that lightly.”
She didn’t just stop at selling airtime and mobile lines, she diversified her business, expanding into retail and wholesale operations.
She was one of the first dealers to become exclusive to Safaricom, which only strengthened her relationship with the company.
The founder of Samchi Telcoms credits Safaricom’s success to four key factors: per-second billing, going for the mass market, the prepaid approach and the provision of phones at subsidised rates.
Empowering agents with business loans
To support agents, M-Pesa offers a business loan facility that allows them to borrow between Sh5,000 and Sh10 million.
M-Pesa agents are charged a fee of 0.123 percent of the total value of the amount requested.
They can access credit for working float to enhance their customer deposit.
The service is available for M-Pesa agent Head offices.
