NAIROBI, Kenya – July 25, 2025 – Safaricom, Kenya’s leading telecommunications and mobile money provider, has launched direct PayPal withdrawals through its M-Pesa super app, a significant upgrade aimed at supporting the country’s burgeoning digital economy. Simultaneously, the company is making strides in smart water management, partnering with local innovators to deploy IoT-based solutions to address Kenya’s water access and conservation challenges. These developments underscore Safaricom’s role as a transformative force in both financial inclusion and sustainable resource management.
M-Pesa’s PayPal Integration Boosts Digital Economy
Announced on July 24, 2025, the integration of PayPal withdrawals into the M-Pesa super app allows Kenyan users to transfer funds directly from their PayPal accounts to their M-Pesa wallets with just a few taps on their Android devices. Previously, users relied on a cumbersome web-based process or third-party brokers, often facing delays of hours to days. The new feature, accessible via the app’s “Global Payments” section, streamlines the process by eliminating browser redirects and multiple logins. Users can link their PayPal and M-Pesa accounts, view real-time exchange rates, and withdraw funds in USD, with the equivalent Kenyan shillings credited within two hours to three days, depending on transaction size. The service, powered by the secure Thunes platform, adheres to Kenya’s data privacy regulations.
This update targets Kenya’s 1.5 million freelancers, remote workers, and digital entrepreneurs who rely on platforms like Upwork and Fiverr for international payments. With M-Pesa processing KES 2.3 trillion ($17.83 billion) in transactions in 2024 and serving 35.82 million active users, the integration enhances financial access for Kenya’s gig economy, where freelancers earn between KES 1,000–10,000 per task. Safaricom’s mobile money revenue grew 15.2% to KES 161.1 billion ($1.25 billion) in the year ending March 2025, driven by a 20.3% increase in chargeable transactions per user, now averaging 37.92 monthly. The app, downloaded 13.7 million times, supports up to KES 500,000 ($3,875) in wallet balances and KES 250,000 ($1,938) per transaction, making it a vital tool for small businesses and individuals.
The move positions Safaricom to compete with Equity Bank’s instant PayPal-to-bank service and alternatives like Wise and Payoneer, which offer better exchange rates but lack M-Pesa’s mobile-first convenience.
Smart Water Management Solutions Address Critical Needs
In parallel, Safaricom is advancing smart water management through partnerships with Kenyan innovators like Majik Water, which deploys IoT-enabled systems to monitor and distribute water in arid regions. These solutions use sensors to track water quality, flow rates, and storage levels, transmitting data via Safaricom’s 4G and 5G networks to optimize distribution and reduce waste. In 2024, Safaricom collaborated with the Kenya Water Institute to pilot smart meters in Nairobi, cutting non-revenue water losses by 15% in test areas. The company’s IoT platform, which supported 1.2 million connected devices in 2024, enables real-time monitoring, helping communities like those in Kitui County access clean water through solar-powered kiosks.
Kenya faces severe water challenges, with 41% of its 54 million people lacking access to safe drinking water, per a 2023 World Bank report. Droughts in the Horn of Africa have displaced 1.1 million Kenyans since 2022, exacerbating scarcity. Safaricom’s initiatives, backed by its M-Pesa Foundation, have funded 200 water projects since 2019, serving 500,000 people. A notable project in Machakos County uses M-Pesa to facilitate payments for water credits, ensuring sustainable access for 10,000 residents. These efforts align with Kenya’s Vision 2030 and the UN’s Sustainable Development Goal 6 for clean water and sanitation.
Broader Implications
Safaricom’s dual focus on financial and environmental innovation cements its role as a leader in Kenya’s digital transformation. The PayPal integration strengthens M-Pesa’s position as Africa’s most successful mobile money platform, processing $4 billion annually in Kenya alone and fostering financial inclusion for 84.8% of households. Meanwhile, smart water solutions address a critical national challenge, with potential to scale across East Africa, where Safaricom operates in Ethiopia and supports cross-border M-Pesa transfers. However, challenges remain, including high transaction fees and the need for broader 5G coverage to maximize IoT impact in rural areas.
As Safaricom continues to integrate global financial tools and sustainable technologies, it is not only empowering Kenya’s digital workforce but also tackling pressing environmental issues, setting a model for tech-driven development in Africa.
