Agents Exit M-Pesa Due to Restricted Till Locations in Kenya

In a significant shift within Kenya’s mobile money sector, thousands of agents have reportedly abandoned M-Pesa, citing frustrations with restricted till location policies. The mass departure underscores the growing discontent among agents who say the restrictions on till locations have limited their operational flexibility and profitability.

M-Pesa, Kenya’s leading mobile money platform operated by Safaricom, introduced restricted till locations to streamline transaction tracking and improve security. However, agents claim that these restrictions have constrained their ability to serve customers across multiple locations, resulting in reduced customer convenience and decreased transaction volumes.

One agent, who requested anonymity, explained, “Restricted tills mean we’re tied to one location, which limits our earning potential. Many of us used to operate in multiple locations to maximize daily transactions, but now that’s become nearly impossible.”

The restricted till policy has affected agents who previously relied on mobility to serve rural and underserved areas where M-Pesa agents are few. By confining agents to specific locations, the policy has disrupted their business models and led many to reconsider their association with M-Pesa. This mass departure could potentially create service gaps, especially in rural areas where alternative financial services are limited.

Customers, too, have voiced their frustrations, especially in regions where agent locations are sparse. For many, M-Pesa has been the primary means of transferring funds, paying bills, and conducting essential transactions. The reduced number of agents is expected to create longer wait times and limited accessibility, impacting the user experience.

Safaricom has yet to issue a formal response to the exodus, but industry experts suggest that the telecom giant may need to review its restricted till policy to avoid further agent attrition. Potential adjustments could include revisiting the policy to allow for increased agent mobility or enhancing revenue-sharing models to incentivize agents.

As the M-Pesa ecosystem grapples with these changes, many are closely watching Safaricom’s next steps. With mobile money serving as a financial lifeline for millions in Kenya, the company’s response to agent concerns will likely shape the future of digital finance in the region.

This development brings M-Pesa to a pivotal point. As competition in the mobile money market intensifies, retaining agents will be crucial to maintaining its market leadership. The question remains: will Safaricom modify its policies to retain agents, or will alternative platforms seize this opportunity to fill the gaps left by M-Pesa?

WEST AREKAHME