The clarification came on Monday, January 12, after an M-Pesa customer took to social media questioning how deductions linked to SHA were being processed without the usual security confirmation required for mobile money transactions.
In a response issued via its official X account, the telecommunications firm explained that the deductions occur through M-Pesa Ratiba, a standing order service that allows pre-authorised payments to be made automatically once a customer has opted in.
According to Safaricom, customers who enrol in SHA’s Lipa Mdogo Mdogo payment plan may unknowingly enable automatic deductions if they activate Ratiba and grant SHA permission to draw funds directly from their mobile money wallets.
“If you have activated M-Pesa Ratiba, which is a standing order service on M-Pesa, and enabled SHA to auto-deduct, deductions can occur without prompting for the PIN,” Safaricom stated.
The explanation followed a complaint from a user identified as @UCollince, who said deductions began shortly after he registered for the SHA Lipa Mdogo Mdogo service.
He questioned how the health authority could access his funds without additional authorisation at the time of each transaction.
In his post, the customer argued that most M-Pesa transactions require PIN verification and expressed concern that the SHA deductions lacked the same security prompts.
Safaricom’s response sought to reassure customers that the deductions are not random or unauthorised, but instead rely on prior consent given during the activation of Ratiba.
In his post, the customer argued that most M-Pesa transactions require PIN verification and expressed concern that the SHA deductions lacked the same security prompts.
Safaricom’s response sought to reassure customers that the deductions are not random or unauthorised, but instead rely on prior consent given during the activation of Ratiba.
Once activated, standing orders allow approved institutions to deduct agreed amounts automatically, eliminating the need for repeated PIN entries.
The telco urged customers to review their M-Pesa settings to confirm whether they have active standing orders and to deactivate them if they no longer wish to allow automatic deductions.
SHA payment reforms
The deductions are linked to ongoing reforms in Kenya’s public healthcare financing, particularly the transition to the Social Health Authority and its contribution model.
The telco urged customers to review their M-Pesa settings to confirm whether they have active standing orders and to deactivate them if they no longer wish to allow automatic deductions.
SHA payment reforms
The deductions are linked to ongoing reforms in Kenya’s public healthcare financing, particularly the transition to the Social Health Authority and its contribution model.
SHA introduced the Lipa Mdogo Mdogo option to allow contributors—especially those in the informal sector—to pay health insurance premiums in small, flexible instalments rather than lump sums.
President William Ruto officially launched the initiative during the 2025 Madaraka Day celebrations, describing it as a way to improve access to healthcare while easing the financial burden on households with irregular incomes.
Under the system, contributors can pay their annual premiums gradually, with payments scheduled based on agreed terms.
President William Ruto officially launched the initiative during the 2025 Madaraka Day celebrations, describing it as a way to improve access to healthcare while easing the financial burden on households with irregular incomes.
Under the system, contributors can pay their annual premiums gradually, with payments scheduled based on agreed terms.
For users who opt for automated payments, Ratiba serves as the technical channel through which deductions are made.
Safaricom said the arrangement is meant to reduce missed payments and ensure continuity of healthcare coverage, but acknowledged that some customers may not fully understand how the auto-deduction mechanism works.
Beyond Lipa Mdogo Mdogo, the government has also announced plans to cover SHA contributions for Kenyans who are unable to pay.
Safaricom said the arrangement is meant to reduce missed payments and ensure continuity of healthcare coverage, but acknowledged that some customers may not fully understand how the auto-deduction mechanism works.
Beyond Lipa Mdogo Mdogo, the government has also announced plans to cover SHA contributions for Kenyans who are unable to pay.
President Ruto said the move follows a nationwide identification process aimed at ensuring universal health coverage.
According to the government, salaried Kenyans who can afford to contribute are required to remit 2.75 per cent of their income, while vulnerable households will be supported through public funds.
Consumer awareness concerns
Despite Safaricom’s clarification, the incident has sparked renewed debate about consumer awareness and transparency in mobile money services.
According to the government, salaried Kenyans who can afford to contribute are required to remit 2.75 per cent of their income, while vulnerable households will be supported through public funds.
Consumer awareness concerns
Despite Safaricom’s clarification, the incident has sparked renewed debate about consumer awareness and transparency in mobile money services.
Some users have called for clearer notifications and more explicit consent processes when activating standing orders linked to government services.
1 Comments
How do I opt out cause I need to be asked to insert my MPESA pin, not safaricom to do it for me. This is theft.
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