Safaricom PLC's mobile financial service, M-PESA, has demonstrated robust performance, showcasing a remarkable 16.5 per cent year-on-year revenue growth, reaching an impressive Sh66.23 billion.

The surge in revenue is attributed to a substantial 12.0 per cent year-on-year increase in Average Revenue Per User (ARPU), now standing at Sh344.05.

This was revealed during the company's announcement of the Half Year 2023/2024 Financial results.

The usage of M-PESA witnessed a noteworthy uptick, with chargeable transactions per one-month active customer soaring by 28.9 per cent year-on-year to 28.94.

The total transaction value experienced a marginal 1.1 per cent year-on-year growth, reaching Sh18.28 trillion. T

his growth, however, was tempered by a slowdown in Consumer-to-Business (C2B) and Business-to-Consumer (B2C) banking transactions.

Conversely, transaction volumes marked a substantial increase of 34.7 per cent year-on-year, reaching Sh12.93 billion.

In response to evolving consumer needs and in accordance with Central Bank's approval, Safaricom raised the daily transaction limits for M-PESA to Sh500,000, effective from 15 August 2023.

Additionally, the limit per transaction was increased to Sh250,000, effective 21 September 2023.

Over the reported period, the number of one-month active M-PESA customers grew by an impressive 3.1 per cent year-on-year, reaching 32.13 million.

The Lipa Na M-PESA active merchants also demonstrated a robust growth of 22.3 per cent year-on-year, totalling 658.35 thousand, while pochi tills stood at an impressive 405.21 thousand.

Safaricom PLC's Chief Financial Officer, Dilip Pal, emphasized M-PESA's pivotal role, stating, "M-PESA now accounts for 42.1 per cent of service revenue, further complementing traditional voice and messaging services."

The success of M-PESA underscores its continued dominance in the mobile financial services sector, providing a seamless and efficient platform for millions of users in Kenya.

The upward trajectory in revenue and usage metrics solidifies M-PESA's position as a cornerstone of Safaricom's comprehensive service offerings.