Bank Agent assist an old man to use digital payment system. Source: Inua Jamii X account.
March 5 – Safaricom’s M-Pesa platform processed Ksh700 million payments for the government’s cash transfer program, Inua Jamii, in January.
Around 300,000 people enrolled in the program benefited from the transfers. The switch to the M-Pesa platform was made in January following a directive from President William Ruto. This shift aimed to save beneficiaries from the inconvenience and costs associated with bank transfers.
The Ministry of Labour and Social Protection released Ksh2 billion as January payments to Inua Jamii beneficiaries and an additional Ksh5.9 million for nutrition improvement through the NICHE program.
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Caregivers of Inua Jamii beneficiaries were required to enroll for M-Pesa payments using their registered M-Pesa phone numbers.
Since December, around 207,000 beneficiaries have enrolled and received payments through M-Pesa. The Ministry of Labour is expected to end payments via bank transfers in February, with all recipients transitioning to M-Pesa.
“There are around 100,000 beneficiaries who have not enrolled (for Mpesa payment) through*222#). These caregivers will be paid through the bank account for the last time and they have only this month to enroll to the Mpesa payment. The caregivers for orphans and vulnerable children and persons with severe disabilities must register to continue receiving their Inua Jamii stipends,” said social protection and social Citizen Affairs principal secretary Joseph Motari.
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The processing of payments via M-Pesa highlights the growth of cashless payments in the country. Safaricom, which operates M-Pesa and controls over 98 percent of mobile money payments, is expected to benefit greatly from the increased volume of transactions.
In February alone, collections through the M-Pesa platform averaged Ksh350 million daily, compared to Ksh50 million daily in the previous year. Safaricom aims to reach 2 million beneficiaries under the Inua Jamii program by September.
