This means that if an operator moves from a designated location, the cash register automatically stops and customers cannot withdraw or deposit cash.

A new disclosure from the telecommunications company shows that 8,344 M-Pesa agents closed their doors in the year to March 2024, visibly disappointed by the new policy, which requires them to operate in one location at all times specific.

“We experienced a decline in active agents (in FY2024) due to the introduction of checkout geolocation,” Safaricom said in a new report.

The number of M-Pesa agents fell to 262,016 in March 2024, a 3% drop from last year’s 270,360, an unusual drop in what has been a source of livelihood or income for thousands of people in the country.

For Safaricom, while the drop in agent numbers may not be a good indication for the M-Pesa business, the new policy will help it deal with the long-standing threat of fraud, which has cost agents and customers millions of shillings.

“While this led to a reduction in the number of active agents, it effectively reduced fraud,” Safaricom said.

Geo-locking checkouts “has in turn led to increased compliance from a regulatory perspective.”

“It also helped identify areas of opportunity based on current credit unions operating in a market.”

The telecommunications company recorded an increase in the number of investigated fraud cases, which more than tripled from 33 last year to 103 this year, in part due to the inclusion of its Ethiopian subsidiary in the tally.

However, the number of asset misappropriation cases, which includes cash theft, fell to zero, while the majority of fraud cases it investigated were linked to policy violations and unauthorized access staff.

In general, the number of mobile money agents over the same period only decreased by 873, meaning that while Safaricom’s M-Pesa agent numbers declined, other mobile money providers mobile money services – Airtel Money and T-Kash, have seen an increase in numbers.

The number of mobile money subscriptions and transactions as well as the total value of transactions also increased during the same period, indicating that the sector remained resilient despite the exodus of M-Pesa agents.