Safaricom Focuses on AI and Fintech for Kenya’s Tech Growth

Safaricom is investing $500 million to transform itself from a telecom provider into a tech leader by 2030. The company is focusing on AI, fintech, and infrastructure upgrades to support Kenya’s businesses, farmers, and entrepreneurs.

M-PESA Fintech 2.0: Africa’s Next-Gen Mobile Money Revolution

Safaricom is taking M-Pesa to the next level by embedding AI into its core operations. Transitioning to a cloud-native Fintech 2.0 platform, the company now enables real-time monitoring, fraud detection, and automated issue resolution. These upgrades are part of Safaricom’s broader goal to spearhead Kenya’s digital transformation.

How AI Is Improving M-Pesa

AI is making a big difference in fraud prevention. In June 2025, Safaricom teamed up with Amazon Web Services (AWS) to introduce graph neural networks that analyze user and transaction relationships. This system achieved an impressive 89% accuracy rate (F1 score) in detecting social engineering fraud.

The Fintech 2.0 platform has also significantly increased transaction capacity, jumping from 4,500 to 6,000 transactions per second, with the ability to scale up to 12,000 during peak times. Beyond efficiency, AI is enabling hyper-personalized services. In August 2025, Safaricom and Huawei rolled out an “Idea-to-Cash” solution, which uses natural language processing to turn customer requirements into financial products instantly, cutting launch times from weeks to mere moments.

AI is also transforming customer support. The Zuri chatbot, now powered by Generative AI through Amazon Bedrock and SageMaker, can handle complex queries for over 30 million M-Pesa users. Meanwhile, the Daraja 3.0 API platform offers AI-enhanced support and advanced security features.

Safaricom’s $500 Million AI Infrastructure Investment

To support its AI ambitions, Safaricom has committed $500 million (approximately KES 65 billion) over three years to build AI-ready infrastructure across East Africa. In May 2025, Safaricom partnered with iXAfrica to establish the NBOX1 Nairobi Campus, a data center with a design capacity of 22.5 megawatts, making it the largest in Greater East Africa. These facilities are tailored for high-density AI computing and advanced data analytics.

Safaricom has trained 5,000 employees in AI fundamentals. Collaborating with AWS, Huawei, Google, and iXAfrica, the company is deploying cloud platforms, machine learning models, and AI-powered business systems. This infrastructure is designed to support local startups, government agencies, and enterprises that need access to AI capabilities.

Fintech 2.0: M-Pesa’s Major Upgrades

Safaricom’s Fintech 2.0 marks a major leap forward for M-Pesa, with a complete overhaul of its technical foundation. This transformation was executed on September 22, 2025, during off-peak hours, when the team successfully migrated 35 million users to the new system. Coupled with AI-driven enhancements, Fintech 2.0 strengthens M-Pesa’s performance and security.

Faster Transactions and Cloud-Native Architecture

M-Pesa has transitioned from a monolithic system to a cloud-native microservices architecture. This new structure allows for modular updates to key services without interrupting operations.

The core database has been divided into stripe units, supported by an active-active architecture. This ensures continuous operation across multiple hosting sites, with automatic failovers if one site encounters issues.

The platform now handles peak loads more effectively and boasts an impressive 99.999% availability rate.

This upgrade involved a collaborative effort from 210 Kenyan developers, 100 on-site partner developers, and 300 remote developers worldwide. In November 2025, Safaricom introduced Daraja 3.0, the updated developer gateway for Fintech 2.0. This gateway offers enhanced Security APIs and enables businesses to create mini-apps within the M-Pesa Super App.

Machine Learning for Fraud Prevention

Machine learning now plays a critical role in M-Pesa’s system, particularly in fraud prevention. Using anomaly detection, the platform identifies unusual transaction patterns. Predictive analytics further supports the system by forecasting transaction volumes and traffic trends. Additionally, self-healing capabilities allow the platform to detect and address threats automatically.

Before and After: M-Pesa Performance Comparison

The shift to Fintech 2.0 has delivered significant improvements:

Feature	Legacy Platform (G3)	Fintech 2.0
Architecture	Monolithic	Cloud-Native
Resilience Model	Active-Passive	Active-Active
Transaction Capacity	4,500 TPS	6,000 TPS (Scalable to 12,000)
Database Structure	Single database	Split “Stripe Units”
Monitoring	Reactive	Proactive
Deployment Speed	Slow	Rapid
Fraud Prevention	Rule-based detection	AI-powered real-time pattern analysis

Currently, the platform processes over 100 million transactions daily. In the last fiscal year, M-Pesa handled 37.15 billion transactions worth KES 38.29 trillion.

Partnerships and Regional Expansion

Safaricom’s vision to become a regional tech leader hinges on forging strategic global partnerships.

Partnerships with AWS, Huawei, and iXAfrica

In May 2025, Safaricom joined forces with iXAfrica Data Centers to launch Kenya’s first AI-ready data center. The NBOX1 Nairobi Campus offers enterprise suites starting at 350 kilowatts and scaling up to 1 megawatt.

In June 2025, Safaricom deepened its collaboration with Amazon Web Services (AWS) by integrating Generative AI into its customer service operations. Just two months later, in August 2025, Safaricom teamed up with Huawei’s CBS Billing team to launch an AI-powered “Idea to Cash” solution.

Expanding M-Pesa Across East Africa

Safaricom is scaling its services across East Africa, targeting a market of over 300 million people. The launch of Daraja 3.0 enables developers to create and host services within the M-Pesa Super App.

Impact on Kenya’s Tech Ecosystem and Startups

Safaricom’s recent infrastructure improvements have opened up opportunities for Kenya’s startup scene.

Supporting Entrepreneurs and Financial Inclusion

Safaricom is backing startups at every stage of their journey. Through specialized subsidiaries, the company provides funding for early-stage ventures.

Growth in E-Commerce, AgriTech, and Digital Payments

One standout example is FarmerAI, introduced in February 2025 through a collaboration with Opportunity International. This tool delivers real-time agricultural insights via SMS and WhatsApp to over 1,000 potato farmers.

Conclusion

Safaricom’s $500 million investment in AI infrastructure and the debut of Fintech 2.0 mark a shift in the company’s role. With increased transaction capacity and advanced AI-powered fraud detection, Safaricom is setting the stage to empower millions of entrepreneurs and businesses across East Africa.

These advancements are fueling Kenya’s tech ecosystem forward. Tools like FarmerAI and DigiFarm are addressing economic challenges with AI solutions. The Daraja 3.0 platform enables businesses to tap into millions of M-Pesa users.

As Africa’s digital economy heads toward a forecasted $712 billion valuation by 2050, Safaricom’s strategic moves are positioning Kenya as a rising technology powerhouse.

FAQs

How will Safaricom’s AI upgrades improve the M-Pesa experience?

Safaricom is introducing AI-powered improvements to M-Pesa, aiming to make the platform faster, more dependable, and capable of meeting increasing demand.

How are global partnerships driving Safaricom’s tech innovation and growth?

Global partnerships are crucial in driving Safaricom’s tech advancements, opening doors to cutting-edge technologies and specialized expertise.

How is Safaricom helping startups grow in Kenya’s tech ecosystem?

Safaricom is investing in AI infrastructure and providing funding and support to startups at every stage of their journey.