How does mpesa work? and What is MPESA?

1 min

In case you did know, MPesa is a mobile money service based in Kenya. M is for Mobile while Pesa is a Swahili word for Money. It was established in 2007 as a micro financing system, but later redesigned to become a mobile money system. The Vodafone service is run by Safaricom and Vodacom which are mobile network operators.

It is available to people with ID Cards or passports, and it can be used to send and withdraw money through a mobile device. It’s also used to pay bills, buy airtime and save money, all through a mobile device. In addition, it can be used to access bank accounts.

MPesa services are offered by mobile network operator agents who act as banking agents. Some fee is charged for the services, and the amount charged depends on whether the user is registered or unregistered, and of course the amount transacted. It ranges between 0.16 – 1.0% of the transaction value.

When it comes to on how MPesa works, you must have a national ID card/passport to access the services from an agent. You must also have a mobile phone using a Safaricom line. In addition, you need to be a registered M-Pesa user to enjoy most of the services. A customer can use the mobile service to send money to other people who are using other mobile networks, like Airtel and Orange.

MPesa services are summarized by its menu which looks like this:

  • Send Money
  • Withdraw Cash
  • Buy Airtime
  • M-Shwari
  • Lipa na M-Pesa
  • My Account

Concerning the first and second service, you need to deposit money in your MPesa account by leaving the cash in a MPesa agent point. You can also deposit by transferring it from your bank account. To withdraw cash, you need to visit the agent, withdraw it from your MPesa account and get it from the agent

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Kennedy Sande

Sande Kennedy is the founder and Editor in Chief of & He is a Kenyan-based Internetprenuer,blogger Political Activist & informer who has an interest in politics, governance, corporate-fraud and human-interest. Kindly drop me a note if you feel aggrieved on any matter that you would want to be highlighted  Twitter: @nyosake , Instagram: @itssandekennedy WhatsApp: +254791890826 Read More about me here
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