How a Kenyan mobile operator transformed into a global financial and social powerhouse

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: Safaricom began as a subsidiary of Telkom Kenya in 1997, but it evolved into the architect of M-PESA, a mobile money system that redefined banking for millions. From humble SMS beginnings to a 5G-enabled ecosystem, the company now navigates complex regulatory, ethical, and technological landscapes across East Africa.

Formed in 1997, Safaricom initially operated as a subsidiary of Telkom Kenya. Its trajectory shifted significantly in May 2000 when the Vodafone Group acquired a 40% stake and management control. Under founding CEO Michael Joseph, who served until 2010, the company expanded its subscriber base from fewer than 20,000 to over 16.71 million. This growth was bolstered by innovative, low-cost services like the Kipokezi email platform and the iconic M-PESA, which launched in 2007 to facilitate microfinance loan repayments via mobile phone.

M-PESA became the cornerstone of Safaricom's dominance, transitioning from a simple peer-to-peer transfer tool into a comprehensive merchant economy. By 2020, the platform supported over 200,000 businesses, eventually growing to more than 500,000. The company’s financial ecosystem further expanded through partnerships, such as M-Shwari with NCBA Bank in 2012 and a mobile health wallet in 2015. These services tapped into underdeveloped financial markets, providing credit and savings access to populations previously excluded from traditional banking institutions.

Despite its success, Safaricom faces significant scrutiny. Investigations have alleged that the company’s call detail records have been accessed by authorities to track individuals without valid court orders, leading to accusations of involvement in extra-judicial activities. Furthermore, the company’s international expansion has met mixed results; while it reached 10 million customers in Ethiopia by 2025, its attempts to replicate the M-PESA model in South Africa struggled against a mature banking sector where 70% of the population was already banked by 2015. Today, Safaricom remains a central pillar of the Kenyan economy, holding approximately 65.7% of the market share as of 2024.

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