In a significant shift towards financial inclusion, Kenya's government has successfully transitioned cash transfers for the Inua Jamii social safety net program to Safaricom's M-Pesa mobile money platform.

This move, initiated in January 2024 following a presidential directive by President William Ruto, aims to streamline the disbursement process and eliminate the inconveniences faced by beneficiaries who previously relied on bank transfers.

Data released by Safaricom indicates that M-Pesa processed Sh700 million in Inua Jamii payments in January alone, benefiting an estimated 300,000 program enrollees.

President Ruto's directive was driven by the need to address the challenges associated with bank transfers, such as long travel distances and associated costs for beneficiaries, particularly those residing in remote locations.

The Ministry of Labour and Social Protection confirmed the release of Sh2 billion in January for Inua Jamii beneficiaries, alongside an additional Sh5.9 million for the complementary NICHE program.

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The transition to M-Pesa payments has been gradual, with around 207,000 caregivers registering for the mobile money platform by December 2023.

The Ministry, according Social Protection and Social Citizen Affairs Principal Secretary Joseph Motari, expects to complete the migration by February 2024, urging the remaining 100,000 caregivers, primarily those for orphans, vulnerable children, and persons with severe disabilities, to register via the *222# code on M-Pesa.

"We note that there are around 100,000 beneficiaries who have not enrolled (for M-Pesa payments) 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 M-Pesa payment," Motari stated.

"The caregivers for orphans and vulnerable children and persons with severe disabilities must register to continue receiving their Inua Jamii stipends."

This shift towards mobile money disbursements presents a significant opportunity for telecommunications companies like Safaricom.

With M-Pesa controlling over 98 per cent of Kenya's mobile money payments, the company is poised to benefit from the increased transaction volume associated with Inua Jamii payments.

Daily collections through the platform have already seen a substantial rise, averaging Sh350 million in February compared to the Sh50 million daily average for the year ending June 2023.

Safaricom further anticipates reaching two million Inua Jamii beneficiaries by September 2024, signifying a potential windfall for the company.

The success of the Inua Jamii program on M-Pesa paves the way for further integration of mobile money into government services.

The recent gazetting of paybill number 222222 as the single payment platform for e-services on the e-Citizen platform signifies a commitment towards cashless transactions and increased financial accessibility for Kenyan citizens.