When a loved one passes away, their M-Pesa account and balances — often a vital part of their financial life—becomes an important matter to address.
The question many are left asking is: what happens to their M-Pesa balances? While the process of reclaiming these funds is relatively straightforward, it involves several legal steps that families and next of kin must navigate.
As at the end of 2024, unclaimed M-Pesa deposits had risen to a staggering Ksh3.2 billion. According to the Unclaimed Financial Assets Authority (UFAA), this accounts for 96.3% of dormant mobile money accounts in Kenya.
An additional Ksh114.3 million and Ksh7 million remain unclaimed from Airtel and Telkom Kenya, respectively.
These figures highlight the significant number of accounts left inactive, often due to the account holder's passing.
Here is a step-by-step guide on what happens to a deceased person’s M-Pesa balance;
1. Notification of Death.
The next of kin must inform Safaricom of the account holder’s death by visiting the nearest Safaricom shop or care center.
They will be required to fill a claim form and present various documents.
These include the deceased’s death certificate, their (next of kin) ID and a document that proves their relationship, either a will or a letter of administration.
2. Funds Disbursement.
Once all the required documents are received and verified, the funds are transferred to the beneficiaries. The beneficiary could be the rightful heir named in the deceased’s will or the next of kin if no will exists.
Beneficiaries must provide a registered M-Pesa account to receive the funds. Safaricom does not transfer funds to other channels or accounts.
3. Unclaimed Funds.
More often than not, the M-Pesa account becomes dormant while the balances remain unclaimed. After two years, these funds are deemed idle and transferred to UFAA as required by the law.
It is crucial to note that once the telecommunications company transfers the unclaimed funds, they can no longer process claims - you are now required to claim directly from UFAA.
Documents Required to Process Claims.
A) When a valid will exists.
Death Certificate
ID of the Next of Kin/ Claimant
Statutory Declaration (Affidavit; a document witnessed by a commissioner of oaths stating facts including the claimant’s relation to the deceased)
Grant of Probate (a court-issued document that confirms the validity of a will)
B) In the absence of a will.
Grant of Letters of Administration (Interstate) plus the death certificate and claimant’s ID
A grant of letters of administration is a court-issued document authorizing an individual to act as the legal representative for a deceased person who passed away without leaving a will.
C) Other Documents.
Confirmation of Grant of Probate of Confirmation of Grant of Letters of Administration.
These confirmations are court-issued documents that identify the beneficiaries and outline their percentage of the deceased’s estate.
Letter from the provincial administration : This is a letter issued by the area chief, the DC, or the PC confirming the details of the deceased person and their beneficiaries.
These documents are mandatory for M-Pesa accounts with amounts more than Ksh30,000. For accounts with less than Ksh30,000, the claimant provides an affidavit, a death certificate, a letter from the provincial administration, and a copy of their ID.
Steps to Register a Next of Kin for your M-Pesa Account
Appointing a next of kin for your M-Pesa or any digital wallet is essential to ensure your funds are transferred to your survivors in the event of death. A next of kin is the closest living blood relative who can be contacted in case of emergencies.
To register a next of kin for an M-Pesa account, you can;
· Dial *234#
· Select option 5- M-Pesa Information
· Select option 6- Next of Kin
· Enter your Bonga PIN
· Enter your Next of Kin details (phone number and ID)
The growing issue of unclaimed M-Pesa balances reveals glaring gaps in financial literacy, estate planning, and awareness of inheritance laws.
While Safaricom has systems in place to help families access these funds, many people are simply unaware of the process.
As a result, billions of shillings remain stuck in dormant accounts and are eventually handed over to UFAA.