2025-Kenya-Tanz: M-Pesa & Internet

You all would be surprised that in Nairobi we had 5G mobile connection and last 7 days, everywhere we traveled, include remote National Parks, we had 3G or LTE mobile network coverage. 

I then realized that while I was teaching (Adjunct) at FDU (Fairly Dickinson University, New Jersey), I had a case-study for my graduate class called M-Pesa. The Brick-and-Mortar banks are there only in the big cities, but most of the people in Kenya live in tribes and in remote villages. 

Using M-Pesa and a simple phone (non-smart), one can open an account by depositing say $100 KES from many mom & pop stores. Then you send money or use it as a currency to buy groceries, tickets etc. It is like Venmo or Zelle in US, or G-Pay worldwide. It was used to send money to their families in villages. But the concept of pier-to-pier financial transaction began first in Kenya.

Here is an Overview of M-Pesa from CharGPT:

Origins & Early Development (2003–2007): The concept began as a project funded by the UK’s Department for International Development (DFID) and developed by Vodafone for Safaricom (Kenya’s largest mobile network).

Initial goal: Help micro-finance borrowers repay loans via mobile phones, reducing the need for long travel to banks.

Launch & Rapid Adoption (2007–2010)

• March 2007 – Officially launched in Kenya by Safaricom.

• Provided basic services: Deposit, Withdraw, Send money, Buy airtime, and Check balance.

Key drivers of success:

• Large unbanked population in Kenya (about 80% at the time).

• Widespread mobile phone use.

• Social need for low-cost, fast money transfers.

• By 2009, M-Pesa had over 6.5 million users in Kenya — far exceeding expectations.

Expansion & Global Influence (2010–2015)

• Expanded to Tanzania (2008), Afghanistan (2008), South Africa (2010), and other markets.

• By 2014, M-Pesa had over 16 million active customers in Kenya alone.

Maturity & Integration (2015–Present)

• Introduced Lipa na M-Pesa — enabling payments to merchants, schools, and businesses.

• Partnered with Western Union, PayPal, and others to enable international remittances.

• Rolled out M-Pesa Global in 2018 for cross-border payments.

By 2023:

• Operates in 7+ countries (including Kenya, Tanzania, Mozambique, DRC, Lesotho, Egypt, and Ghana).

• Over 50 million active customers worldwide.

• Handles billions of transactions annually, with total transaction value exceeding half of Kenya’s GDP.

Impact of M-Pesa:

• Financial inclusion: Brought banking-like services to millions without formal bank accounts.

• Economic growth: Boosted small businesses and rural economies.

• Security: Reduced the risks of carrying cash.

• Model for others: Inspired mobile money platforms across Africa, Asia, and beyond.

Nationwide Mobile Network Coverage:

Kenya’s ability to have internet access even in remote areas — including national parks — is the result of several overlapping developments in mobile network expansion, infrastructure investment, and alternative connectivity solutions.

• Safaricom, Airtel, and Telkom Kenya have aggressively built 2G, 3G, 4G, and now 5G towers in rural and remote locations.

• Use high-gain antennas and long-range microwave links to connect towers in areas without fiber.

• Place towers on high terrain to maximize reach in flat Savannah and hilly areas.

• Satellite communication is also used as a backup.

Even in national parks, visitors can share photos, use maps, and contact lodges. This is what kept us connected.