Over the past few months, Safaricom has been working tirelessly in implementing more products which include the launching of M-PESA Junior Accounts, Halal Pase, and other products, with them hitting a Milestone of 30 Million Monthly Customers around March.
And earlier this month another development was announced by Safaricom CEO Peter Ndegwa at the presentation of the full-year results for the period ending March 2022 of the launch of M-PESA Junior Accounts for young Kenyans between the age of 10 to 18 years.
Individuals who do not have IDs to register a Safaricom line but have access to the network through SIM cards registered under their guardians or parents will be able to apply for a Minor Account. This account will be available to them.
“We plan to soon launch an M-PESA Junior Product for our children who may have access to mobile phones,” said CEO Ndegwa.
Limitation Of M-PESA Junior Accounts
Despite the fact that the company wants to expand the scope of its M-PESA services because it makes more money for the company. M-PESA recorded a 30.3% YoY growth to KES 107.69 billion. This was supported by the resumption of charging of previously zero-rated transactions beginning in January 2021.
Total M-PESA transaction value grew 34.0% YoY to KES 29.55 trillion while the volume of transactions rose 34.9% YoY to 15.75 billion.
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However, a report has it’s that many Kenyan people with access to these services are now in debt. There are many individuals in the nation who are unable to repay their debts. And this raised a series of concerns if the service will still be made available for minor
Moreover, Safaricom said in a tweet that Minors will not have access to loans or savings products. As a result, Fuliza, KCB M-PESA, and M-Shwari would be unavailable to them, leaving them with the choice of sending, receiving money, and paying bills instead.
Betting Generates More Money for Safaricom
Aside from other products offered by the company, the report has it that a total of Sh169.1 billion ($1.5 billion) has been spent on M-Pesa betting by Kenyans in the year.
The value of bets increased by 23.8% from Sh136 billion ($1.2 billion) a year earlier, according to Business Daily
While the government of Kenya is working to eliminate gambling via the imposition of increased taxes on gaming businesses and individuals, the gambling industry continues to thrive in the country. Despite this, people in the nation continue to bet, and businesses like Safaricom, the Kenya Revenue Authority (KRA), and others are reaping significant financial benefits.
The income that Safaricom earned from betting increased by 40 percent to a total of Sh5.98 billion ($50.7 million) in the previous financial year, putting it higher than other companies that are listed on the Nairobi Securities Exchange (NSE).
More To Know On M-PESA Junior Account
Safaricom states that M-PESA Junior should be available by the end of June
Over the previous several weeks, Kenya has tightened its hold on SIM card registration. As authorities and carriers work to root out unlawful activity employing illegally registered SIM cards, customers are being reminded to double-check the information on their SIM cards.
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Children may have SIM cards as well, but they must be registered with their parents’ or guardians’ identity credentials.
Aside from the above Safaricom has not revealed additional details on how the M-PESA Junior accounts will work, as this is still a developing story subject to further review by the country regulators. We will update this article or provide a follow-up once we have more information and there is regulatory approval for this product.