M-Pesa gradually losing ground as Airtel Money gains track in East Africa’s digital money transactions

The M-PESA digital money transactions platform used by Safaricom the largest mobile network operator in Kenya and Vodacom which tops the bill in Tanzania, is reported to be losing market share.

M-Pesa has been nose-diving for six straight quarters in Kenya, while its rival, Airtel Money gains ground in the field.

M-Pesa market share, according to the latest Tech Safari report, has been dropping from 97 percent in the fourth quarter of the year 2023 down to 90.8 percent recorded within the first quarter of 2025.

On the other hand, Airtel Money has climbed up to 9.1 percent from just 2.9 percent which was recorded two years ago, as far as the Kenyan market is concerned.

In Tanzania M-Pesa still rules but loses gradually. Plus, People in Kenya and Tanzania keep sending money to each other, which means the platform of choice in one state may influence another country.

What boosts Airtel Money, at least as far as Tech Safari study is concerned, is the company’s fee refunding strategy, lower costs, and supermarket partnerships.

While this is more defined in Kenya, tech market observers are sure the same situation could be replicated in Tanzania, where the two cellular service providing companies also operate at cutthroat competition.

Founded and launched by Vodafone and Safaricom in 2007, M-Pesa is a mobile phone-based money transfer service, payments and micro-financing service currently operating in Tanzania, Mozambique, Democratic Republic of Congo (DRC), Lesotho, Ghana, Egypt, Afghanistan, South Africa and Ethiopia.

Safaricom is still a leading Telkom in Kenya, while Vodacom maintains the upper hand in Tanzania but their joint money transfer network, M-Pesa is the one which seems to be dropping rapidly and customers switch to affordable systems.

In Tanzania, for instance, Vodacom commands 41 percent of mobile money market share. Tigo has been in the second position with 24 percent and Airtel coming third with 21 percent, while Halotel has to do with a measly 10 percent.

But even in Tanzania Airtel is gaining ground but still far from toppling Vodacom.

In yet another tech development, the Nigerian Fintech Flutterwave has cut 50 percent of its staff in Kenya and South Africa as the company works to trim costs ahead of a potential public listing.

The layoffs hit multiple departments, with the biggest impact in compliance, legal, and Human Resources.