If you just moved to Kenya, you’ll notice one thing fast: people don’t carry cash. They pay for almost everything using M-Pesa. From groceries to taxis to rent to electricity tokens, mobile money runs daily life here.

If you want to settle smoothly, you need to understand how Kenya’s mobile money ecosystem works.

This guide breaks down M-Pesa, Airtel Money, mobile banking, international transfers, and how to stay safe while using them.

Let’s get into the essentials.

What Is M-Pesa?

M-Pesa is Kenya’s mobile money system. Safaricom launched it in 2007, and today it’s used everywhere. It works on any phone — smartphone or basic keypad — and lets you send money, pay bills, buy goods, withdraw cash, and receive payments through your phone number.

For most Kenyans, it replaces a bank account. For newcomers, it becomes one of the most useful tools you’ll use every day.

You can use M-Pesa to:

  • Pay rent

  • Pay bills (electricity, water, Wi-Fi)

  • Shop in supermarkets

  • Pay for rides (Uber, Bolt, taxis)

  • Send money to friends

  • Receive payments from employers or clients

  • Buy airtime or data

  • Make online purchases

If you want to live comfortably in Nairobi, learning M-Pesa isn’t optional. It’s essential.

How to Get M-Pesa in Kenya

You need two things:

  1. A Safaricom SIM card

  2. Your passport

Visit any Safaricom shop, kiosk, or official agent. They’ll register your SIM in a few minutes. After that, M-Pesa activates automatically.

If you need an address for registration and you haven’t secured long-term housing yet, you can stay in one of our serviced apartments in Lavington, Kileleshwa, Kilimani, or Westlands — any of these areas work well for SIM registration and banking paperwork.

How M-Pesa Works (Simple Breakdown)

You don’t need a bank account to use M-Pesa. Your phone number is your account.

Here’s the basic flow:

1. Deposit cash

If you’re new and don’t have a bank account yet, you can walk into any M-Pesa agent and hand them cash. They deposit it into your phone.

2. Keep money in your M-Pesa wallet

Your balance is stored digitally.

3. Send or receive money

You enter the number, amount, and PIN. Transfers happen instantly.

4. Pay businesses

Most stores display a “Paybill” or “Till Number.” You use these instead of paying with cash.

5. Withdraw if you need

You can walk to any M-Pesa agent and withdraw money using your PIN.

That’s the entire system.

Important M-Pesa Terms (You’ll See These Everywhere)

Paybill

Used to pay companies (internet, rent, electricity).

Till Number (Buy Goods)

Used to pay shops and restaurants.

Agent

Physical locations where you deposit or withdraw cash.

Float

The cash an M-Pesa agent has available for withdrawals.

M-Pesa PIN

Your 4-digit security code. Guard it with your life.

How to Use M-Pesa for Everyday Life in Nairobi

Nairobi is designed around mobile money. Here’s how you’ll use M-Pesa daily:

1. Paying Rent

Most landlords prefer:

  • Paybill numbers

  • Till numbers

  • Direct phone transfers (P2P)

If you’re a newcomer and still searching for housing, you can start with a serviced unit while getting used to the payment system. Browse available options here: furnished apartments in Nairobi.

2. Buying Groceries

Major supermarkets accept:

  • M-Pesa Buy Goods

  • M-Pesa Paybill

Small shops also accept M-Pesa. Even the tiniest kiosks have till numbers.

3. Paying for Uber, Bolt, Little Cab

You enter your number on the app. You pay through M-Pesa when the driver ends the trip.

4. Paying Utility Bills

Electricity, water, garbage, and Wi-Fi all accept M-Pesa.

Examples:

  • Kenya Power Paybill: 888880

  • Zuku Wi-Fi Paybill

  • Safaricom Home Fibre Paybill

5. Sending Money to Friends or Family

Type the phone number. Confirm the name. Send.

6. Receiving Salary or Freelance Payments

Many employers pay directly to M-Pesa.

7. Topping Up Airtime

Dial *544#. Select “Buy Airtime with M-Pesa.” Done.

Using M-Pesa With a Bank Account

Most expats eventually link M-Pesa with their local bank. You can move money between the two in seconds.

Banks that integrate well with M-Pesa:

  • KCB

  • Equity

  • Absa

  • Co-operative Bank

  • Standard Chartered

The feature is called “Lipa na M-Pesa” or “Bank to M-Pesa / M-Pesa to Bank.”

If you haven’t opened a local bank account yet and need a simple guide, you can check our article on how to set one up.

International Transfers: Using M-Pesa With Foreign Banks

You can send and receive international money transfers through:

  • Western Union

  • PayPal

  • Wise

  • WorldRemit

  • Remitly

  • Sendwave

  • Wave

Some platforms deposit directly into your M-Pesa balance. For new arrivals with no local bank account yet, this is very useful.

Airtel Money: The Alternative

Airtel Money is Safaricom’s main competitor. It’s cheaper for some transfers and works the same way. But most Kenyans still use M-Pesa, so you’ll find fewer till numbers and paybill options.

Many expats keep a Safaricom line as their main number.

M-Pesa Fees

Fees depend on:

  • How much you send

  • Whether you’re transferring to another M-Pesa user

  • Whether the recipient is on a different network

  • Whether you’re withdrawing

Payments to businesses (Buy Goods) usually cost zero.

Person-to-person transfers cost a small amount, especially for big transactions.

Withdrawals cost more than transfers. Most expats don’t withdraw much because almost everything is digital.

M-Pesa Limits

You need to know these limits before planning large payments.

Daily transaction limit:

KES 300,000

Single transaction limit:

KES 150,000

Maximum wallet balance:

KES 500,000

If you plan to make higher payments for rent or vehicles, use a bank transfer instead.

How Safe Is M-Pesa?

M-Pesa is safe when you use it correctly. Problems start when someone tricks you into sharing your PIN.

Follow these rules:

  • Never share your PIN

  • Confirm the name before sending

  • Don’t respond to suspicious texts or calls

  • Don’t reverse transactions unless Safaricom instructs you

  • Use the official Safaricom app if you want more control

If your phone gets lost, you can replace your SIM at any Safaricom shop using your passport.

Common M-Pesa Scams (And How to Avoid Them)

1. Fake “reverse my money” messages

Scammers send fake SMS messages claiming you received money by mistake.

Ignore them.

2. People asking for your PIN

Nobody legitimate needs your PIN.

3. Fake airtime or loan texts

These usually want you to dial suspicious numbers. Don’t.

4. Buying items from strangers online

Always meet in public places. Confirm items before paying.

Using M-Pesa With a Kenyan SIM If You Haven’t Found Housing Yet

This is a common challenge for new arrivals. Safaricom agents ask for:

  • Your passport

  • A contact address

If you aren’t settled yet, you can use a hotel or serviced apartment address. Our units in Lavington, Kileleshwa, Kilimani, or Westlands work well for people who are just arriving.

Staying in a place that’s already set up also helps with:

  • Bank account applications

  • Work permits

  • Embassy registrations

You can browse your options here:
Serviced apartments in Nairobi.

Using M-Pesa for Transportation

Most foreigners use M-Pesa for:

  • Uber

  • Bolt

  • Little Cab

  • Car hires

  • Gas stations

If you need your own transport while settling in, you can book a vehicle through our car hire in Nairobi page. Payments are easy through M-Pesa, and you avoid the hassle of public transport during your first weeks.

Why M-Pesa Makes Living in Kenya Easier

Daily life becomes simpler when your mobile payments work smoothly. You’ll save time and you won’t need to carry cash. Nairobi is fast-paced, and M-Pesa helps you move with the city.

Once you understand how it works, things become predictable:

  • You know how to pay for everything

  • You know your limits

  • You can track your money

  • You can send and receive payments instantly

Even expats who were skeptical at first end up relying on it more than they expected.

Final Thoughts

If you’re new to Kenya, take time to learn how M-Pesa works. It’s safe, fast, and built for daily life. Once you set it up, you’ll use it everywhere — from paying rent to buying dinner.

If you want a smooth landing in the city while you sort out your SIM registration, banking, and paperwork, you can stay in one of our serviced units in Lavington, Kileleshwa, Kilimani, or Westlands — or browse all options here: furnished apartments in Nairobi.

If you need transport during your first days in the city, we also offer car hire in Nairobi.