This archive report was first published on 12 July 2021.
On July 12, 2021, Safaricom paid Sh1.4 billion worth of M-Pesa technical support fees to M-Pesa Africa, a company it owns on a 50/50 basis with its South African parent firm Vodacom Group.
The fee was paid in the year ended March at a rate of two percent of the telco’s M-Pesa revenue of Sh82.6 billion in the review period, according to disclosures in the firm’s latest annual report.
Under the new arrangement, Safaricom will recoup part of the M-Pesa fees through its share of profits in the joint venture now offering technical support to the platform.
“M-Pesa Africa Limited is a joint venture between Safaricom Plc and Vodacom Group (SA). The company has entered into a managed services agreement with the Safaricom Plc to provide technical and product-based M-Pesa solutions against which a fee is charged monthly,” the telco says in the report.
“The fee is based on two percent of the M-Pesa transaction revenue effective April 1, 2020.”
