Safaricom has clarified the technical process that enables the Social Health Authority (SHA) to deduct premiums from M-Pesa accounts without a per-transaction PIN. The explanation follows user inquiries about the automatic payments under the SHA’s “Lipa Mdogo Mdogo” contribution plan.
Questions arose after an M-Pesa user, Collince, posted on the social media platform X, seeking clarity from the telecommunications provider. He noted that deductions for the national health insurer began after his enrollment and occurred without the standard PIN prompt.
“Can you explain how SHA is deducting money without a PIN request? This started after registering for Lipa Mdogo Mdogo. We need to understand how this authorization works,” the user wrote.
In a response via its official X customer service channel, Safaricom detailed that such transactions are possible when a customer grants a one-time authorization for recurring payments.
“Hello. Thank you for your query,” the company stated. “When you authorize a merchant like SHA for automatic deductions, subsequent payments can process without entering your PIN each time. This is part of our M-Pesa merchant debit service designed for recurring bills.”
The service Safaricom referenced is distinct from the customer-initiated “M-Pesa Ratiba” standing order feature. Instead, it operates under the M-Pesa Auto-Debit (Pull) service, a system where a pre-approved third-party collector can initiate transactions from a user’s wallet within agreed limits and frequencies. Users typically provide this authorization once during the service registration process, often via a USSD prompt requiring their PIN to set up the mandate.
Safaricom’s clarification highlights a standard practice in digital finance, where recurring payments for subscriptions, loans, or insurance premiums are automated for user convenience. The company advises customers to review and manage their authorized debit services directly through the M-Pesa menu or the mySafaricom app
The SHA has promoted the Lipa Mdogo Mdogo plan as an accessible way for Kenyans to stay compliant with health insurance contributions through small, frequent payments
Financial technology analysts recommend that users regularly monitor their M-Pesa statements for all automated transactions and ensure they understand the terms of any authorization granted to third parties.Safaricom Officially Explains How SHA is Now Set to Access Kenyans Mpesa Accounts & Deduct Money
Customers with concerns about specific deductions or who wish to revoke an authorization are encouraged to contact Safaricom’s customer care on 100 for immediate assistance.
