Safaricom's Pochi La Biashara Service Records Double Growth Over M-Pesa Reversal Fears

• According to Safaricom's annual report for the year ended March 2024, pochi tills increased from 292,634 in March 2023 to 632,681 in March 2024
• Safaricom revealed that M-Pesa accounts for 42.2% of service revenue, complementing traditional voice and messaging services
• During the period under review, M-Pesa revenue rose by 19.4% to KSh 139.91 billion due to an increase in the number of users

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Safaricom's Pochi La Biashara service has recorded a double growth in the number of users over M-Pesa reversal fears by small businesses.

M-Pesa reversal is the process of undoing a transaction made via the M-Pesa mobile money service.

If there was a mistake in the transaction, including transferring money to the incorrect person or if a transaction was carried out without authorisation, a reversal is done.

However, some dishonest M-Pesa users have been making reversing transactions after purchases, leading to small businesses making losses.

According to Safaricom's annual report for the year ended March 2024, pochi tills increased from 292,634 in March 2023 to 632,681 in March 2024.

"One-month active M-Pesa customers grew 0.9% YoY to 32 million. Lipa Na M-PESA active merchants grew 4.3% YoY to 633,000, while pochi tills stood at 632,681 as at the end of FY24," the telecommunications company stated.

What was Safaricom's M-Pesa revenue?

Safaricom revealed that M-Pesa accounts for 42.2% of service revenue, complementing traditional voice and messaging services.

During the period under review, M-Pesa revenue rose by 19.4% to KSh 139.91 billion due to increased users.

"Total transaction value rose 9.4% year-on-year to KShs 39.39 trillion, while volumes grew 34.7% YoY to 28.33 billion."

What was Safaricom's profit?

Safaricom Group's profit dropped to KSh 42.6 billion for the full year ending March, down from KSh 52.48 billion during a similar period last year.

Safaricom Kenya's full-year profit rose to KSh 82.65 billion, up from KSh 74.9 billion in March 2023.

The company's operating profit during the period under review increased by 20% to KSh 139.9 billion, making it the first firm in the region to hit the billion-dollar mark in revenues.

Safaricom chief executive officer Peter Ndegwa attributed the performance to an efficient and productive workforce.

The telco's shareholders bagged over KSh 48 billion in dividend payout.

Safaricom board recommended a final dividend payout of KSh 0.65 per share, amounting to KSh 26.04 billion, plus KSh 0.55 (KSh 22.04) interim dividend paid in March 2024, bringing the total to KSh 48.08 billion.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.