Safaricom Addresses M-PESA Wallet Deduction Concerns

Safaricom, Kenya’s largest telecommunications provider, has addressed concerns regarding unexplained deductions from M-PESA user accounts. The company attributes these transactions to pre-approved standing orders related to payments for the new health levy.

The clarification comes after numerous customers reported noticing funds being withdrawn from their M-PESA wallets without a confirmation screen appearing, raising concerns about potential unauthorized access.

M-PESA Ratiba and Health Levy Payments

Safaricom stated that the deductions are linked to payments to the Social Health Authority (SHA) and are processed through a standing order feature called Ratiba. M-PESA Ratiba allows customers to set up recurring payments that are completed automatically without manual intervention. Customers can manage these standing orders by dialing *334# or through the Ratiba Mini App within the M-PESA App.

How Ratiba Functions

Ratiba enables customers to pre-approve repeat payments, allowing future deductions to occur automatically. Once a standing order is established, transactions are executed on the scheduled date without further prompts, including PIN entry. The PIN is only required during the initial setup of the standing order.

Ratiba can be activated through a USSD code or within the M-PESA app. Users specify the amount, frequency, and recipient, then approve the instruction. After approval, the system automatically completes payments until the standing order is cancelled or paused.

Widespread Use of Ratiba

Beyond contributions to the Social Health Authority, Ratiba is utilized for a variety of regular payments. These include loan repayments to digital lenders, scheduled transfers to savings products, insurance premiums, subscription services, school fee installments, and regular bill payments. The feature functions similarly to standing orders in traditional banking, adapted for a mobile money system focused on instant transactions.

Customer Concerns and Recall

Several users have expressed surprise regarding these automatic deductions. Some customers report not recalling activating a standing order for the SHA, while others claim they approved it during registration or onboarding but subsequently forgot to deactivate it. One small business owner, Paminus Migiro, stated he set up Ratiba to avoid missed payments but had forgotten about it.