Safaricom has moved to clarify how the Social Health Authority (SHA) can deduct money from M-PESA accounts without prompting users to enter their PIN, following public concern over automatic deductions linked to the Lipa Mdogo Mdogo health insurance service.
The clarification came after an M-PESA user took to social media on Monday, January 12, 2026, questioning how funds were being withdrawn from his account without his direct authorization at the time of payment.
The user, identified on X as @UCollince, said the deductions began shortly after he enrolled in SHA’s Lipa Mdogo Mdogo contribution plan.
“Good morning @SafaricomPLC. Kindly explain how @_shakenya is able to deduct money from our M-PESA accounts without prompting us to enter our PIN. This started happening after we registered for the Lipa Mdogo Mdogo service. We need clarification on how this authorization works,” he wrote.
The post quickly gained traction online, with many Kenyans expressing unease over what they perceived as silent deductions from their mobile wallets, raising broader questions about consent, transparency, and data security.
Safaricom Responds
In response, Safaricom explained that the deductions occur when a customer has activated M-PESA Ratiba, the telco’s standing order feature, and has granted SHA permission to auto-deduct contributions.
“Hello Collince, apologies for that. If you have activated M-PESA Ratiba, which is a standing order service on M-PESA, and enabled SHA to auto-deduct, this can happen without prompting for the PIN,” Safaricom stated.
However, the user disputed Safaricom’s explanation, arguing that his mother never activated M-PESA Ratiba, yet her money was being deducted without her authorization.
Safaricom did not respond to that concern.
According to the telco, once a user authorises a standing order, future payments can be processed automatically without requiring repeated PIN confirmation.
What Is M-PESA Ratiba?
M-PESA Ratiba was introduced in October 2024 as a first-of-its-kind mobile money feature allowing users to set up recurring payments directly from their M-PESA wallets.
The service enables automatic transfers on a daily, weekly, monthly, or yearly basis, making it ideal for recurring obligations such as rent, school fees, insurance premiums, subscriptions, utility bills, and now health insurance contributions.
Safaricom says the feature is designed to simplify payments and improve consistency, with no penalties for failed or cancelled standing orders due to insufficient balance.
Public Concerns Persist
Despite the explanation, the incident has reignited debate over consumer awareness and digital consent, with some users arguing that many Kenyans may not fully understand the implications of activating auto-deduction services.
Consumer rights advocates are now calling for clearer communication, stronger opt-in notifications, and easier ways for users to monitor and cancel standing orders.
As SHA ramps up enrolment into its health financing programs and M-PESA continues to anchor Kenya’s digital payments ecosystem, the episode underscores the growing tension between convenience and control in mobile money transactions.
For now, Safaricom is urging users to review their M-PESA Ratiba settings and confirm which organisations have permission to auto-deduct funds from their wallets.
