Average annual commissions earned by M-Pesa agents have dropped to a record low of Sh112,244 in the year ended March 2026 as increased competition squeezes returns, pushing them to seek additional income through rival services such as agency banking and Airtel Money.
The latest figure, which is equivalent to Sh9,353 per month, marked a drop from Sh124,720 in 2025 and Sh144,355 in 2024, with the estimates inferred from the number of agents and total commissions paid out by Safaricom.
Disclosures from the telco show that the number of M-Pesa agents climbed to 333,011 in the financial year ended March 2026, up from 298,890 in a similar period last year, nearly double the 173,000 outlets recorded in 2020.
The rapid rise in the number of agents has intensified competition for transactions, shrinking the average earnings per agent despite continued growth in overall mobile money usage.
Safaricom says M-Pesa now facilitates over 136 million daily transactions for 40.66 million customers, having processed Sh41.68 trillion in the year to March 2026 or an equivalent to about 2.4 times of Kenya’s nominal Gross Domestic Product (GDP) of Sh17.577 trillion.
Over the past three years to March 2026, Safaricom has welcomed 70,995 new agents. However, its spending on the agents has dipped by Sh444.8 million to Sh37.38 billion in the year ended March 2026, having peaked at Sh37.82 billion in the year ended March 2024.
Safaricom data shows M-Pesa commissions remained relatively stable at about Sh37.38 billion in the year under review compared to Sh37.27 billion in 2025, highlighting that the decline in individual earnings is largely a function of the swelling agent base.
The trend points to a growing pressure on the traditional M-Pesa agency model, which has long been a key income stream for thousands of small businesses across the country.
Agents, once buoyed by strong margins from deposits, withdrawals and airtime sales, are increasingly finding these revenue streams insufficient to sustain operations.
The latest average earnings, which is about Sh9,353 a month, is barely enough to cover basic costs such as rent and wages for those who employ attendants.
Many M-Pesa operators are therefore diversifying into other financial services to cushion their earnings as the rise of digital payments in the economy cuts cash sending and receiving footfall at agent’s outlets.
Many mobile money recipients who previously withdrew cash before transacting are now paying for expenses such as food, school fees, rent and fare directly through mobile money platforms.
For instance, Safaricom’s Lipa na M-Pesa revenues rose by 21.7 percent to Sh9.3 billion in the year ended March 2026, while Pochi la Biashara revenue grew by 86 percent to Sh4 billion over the same period, boosted by increased usage.
Average annual earnings per M-Pesa agent peaked in 2016 at Sh145,768 when Safaricom paid out Sh14.68 billion to 100,744 agents. The average earnings have been generally declining since then.
Agency banking, where agents offer services on behalf of banks such as cash deposits and withdrawals has emerged as a key alternative for agents trying to steady their earnings.
Many of the mobile money agents are now opting to run M-Pesa business alongside rival Airtel Money and banking agency services for multiple banks such as KCB Bank Kenya, Equity Bank Kenya and Co-operative Bank of Kenya under one roof.
Offering the financial services of multiple firms under one roof is helping them to tap into additional transaction flows and commissions, making their operations sustainable.
M-Pesa agents’ squeeze on earnings is also being compounded by declining revenues from airtime sales, which were traditionally their supplementary income stream.
Safaricom disclosures show Airtime commissions stood at about Sh9.41 billion in 2026, marking modest recovery from a record low Sh8.1 billion in 2025.
The telco does not disclose the number of agents who exclusively sell airtime. However, many M-Pesa outlets also sell airtime, meaning that the per agent commission for airtime has followed the same trend as that of mobile money.
Earnings from airtime have generally been on decline, having peaked at Sh11.42 billion in 2018 before dropping below Sh10 billion in 2020 and further to the record low of 2025.
The decline in airtime earnings has coincided with reduced talk time and falling calling tariffs as telcos cut prices to cushion the drop in voice usage among Kenyans.
The Kenyan market has witnessed shifts in consumer behaviour including the rising use of internet-based messaging and calling apps such as WhatsApp.
In addition, customers are increasingly purchasing airtime directly through M-Pesa and other digital channels, reducing reliance on physical scratch cards that agents used to sell. This has further tightened margins in an already competitive environment.
The continued expansion of the agency network in the financial sector, driven by efforts to deepen financial inclusion and expand access points, means that competition for transactions in the financial sector will intensify further.
Central Bank of Kenya data shows banks and microfinance banks had contracted 89,167 and 539 bank agents, respectively by the end of 2024. Over 90 percent of the approved bank agents were concentrated in three banks namely Equity Bank Kenya (37,704), KCB Bank Kenya (23,336) and Cooperative Bank of Kenya (18,207).
Safaricom, once dependent on voice and messaging revenue, has transformed itself into a technology firm drawing most of its revenue from mobile money services and data.
In the year ended March 2026, M-Pesa was the top revenue earner, generating Sh182.74 billion, followed by mobile data revenue (Sh92.91 billion). Voice revenue came third (Sh84.82 million) while messaging returned Sh11.17 billion.
