Airtel Money vs. M-PESA: Did you know ALL Airtel-to-Airtel money transfers are completely free?

For years, mobile money in Kenya has effectively meant one thing: Safaricom’s M-PESA.

It became so dominant that most of us stopped questioning the fees attached to using it. Sending money? Pay. Withdrawing money? Pay. Sending even small amounts? Also pay. But lately, I’ve found myself paying closer attention to Airtel Money. Partly because I use it regularly to pay for my Airtel 5G router plans and Smarta bundles, but also because the conversation around mobile money costs in Kenya is becoming impossible to ignore.

That conversation has become even more relevant following the proposed 16% VAT on payment provider services in the Finance Bill 2026, which could make transactions even more expensive from July 1.

As we recently explained in our coverage of the Finance Bill 2026 VAT proposal on M-PESA and payment providers, the government is effectively trying to rewrite the law after a High Court ruling exempted payment provider fees from VAT. If passed, the cost of paybills, tills, and transfers could rise further. And that immediately got me thinking about something many Kenyans still surprisingly don’t know:

Airtel Money-To-Airtel Money transfers are completely free

Not free up to KES 100 for like M-PESA. Not free up to KES 1,000 like the COVID-19 period. But free across all amounts.

Meanwhile, M-PESA still charges users for many on-net transactions once you move beyond the limited free thresholds.

According to the official Airtel Money tariffs page, Airtel-to-Airtel transfers remain free regardless of amount. That policy has remained unchanged since the company revised Airtel Money charges in 2023.

Safaricom, on the other hand, revised M-PESA charges in 2024. But unlike Airtel, the revisions did not really make transactions cheaper. In some cases, they became more expensive. You can see the current structure on the official M-PESA consumer tariffs page.

Even CBK knows mobile money fees are a problem

The Central Bank of Kenya itself appears aware that mobile money costs havee become too high for an economy increasingly built around digital payments.

Last year, we reported on the CBK’s proposal aimed at reducing the average cost of mobile money transactions to around KES 10. And honestly, the concern makes sense.

Mobile money in Kenya is no longer just a convenience feature. It is infrastructure that people use for transport, groceries, rent, internet subscriptions, school fees, and business payments. Increasingly expensive transaction fees start feeling like a tax on participating in the digital economy itself.

My colleague Dickson recently argued that M-PESA’s free transaction threshold should increase from the current KES 100 to at least KES 500 or even KES 1,000. In his excellent piece on the case for restoring free M-PESA transfers up to KES 1,000, he makes a compelling argument that KES 100 barely covers anything meaningful anymore.

And I agree with him.

But after looking at Airtel Money’s approach, I think the conversation should go even further. Why should on-net M-PESA transfers be charged at all when a much smaller competitor like Airtel Kenya can afford to keep Airtel-to-Airtel money transfers completely free?

Airtel Money’s growth suddenly makes more sense

Airtel Money recently crossed the 10% market share milestone in Kenya’s mobile money sector, something we discussed in our analysis of the growing Airtel Money IPO and valuation story. And when you look at the pricing differences, that growth suddenly starts making a lot more sense.

Every time M-PESA charges a fee someone feels is unfair, Airtel Money’s positioning becomes easier to market. Every time transaction costs rise, Airtel’s “free transfers” message becomes more attractive.

Personally, I still use both services because M-PESA’s ecosystem remains unavoidable in some situations. But I increasingly appreciate Airtel Money every time I make a transaction and realize no fee was deducted.

That feeling matters. Especially now, when Kenyans are already dealing with rising taxes, expensive internet, higher fuel costs, and an overall rising cost of living.

Which begs the question, did you know ALL Airtel Money-to-Airtel Money transfers are completely free? Let us know in the comments below.