NAIROBI, Kenya — The Central Bank of Kenya (CBK) has given the green light for the rollout of phone-number masking across M-Pesa transactions — a move aimed at strengthening user privacy and reducing instances of fraud and unsolicited contact linked to mobile money transfers.
Under the new arrangement, merchants and other recipients of payments will no longer automatically receive the payer’s full mobile number when a transaction is made. Instead, only a masked version of the number — such as “0722XXXXXX” — will be visible, shielding users’ personal information from exposure during normal mobile money activity.
What Changes for Users and Merchants
Traditionally, when a consumer paid using Safaricom’s M-Pesa service — particularly via Paybill or Buy Goods transactions — the full mobile number was transmitted to the merchant along with the payment notification.
Many users reported receiving unsolicited calls and messages after payments, raising data privacy concerns.
With masking enabled, the merchant will still be notified of payment, but the actual phone number will be obscured. Merchants will be expected to verify transaction legitimacy through their own point-of-sale interfaces, M-Pesa business apps, or secure USSD prompts.
For consumers, the update should be seamless — payments will function as before, except that sensitive personal information will remain protected at the system level.
Privacy and Fraud Protection
Experts and digital rights advocates have welcomed the move as a significant step toward better protection of mobile money users’ personal data. Unmasked numbers have long been a vulnerability exploited by fraudsters and spammers, and privacy laws such as the Data Protection Act, 2019 require service providers to minimise unnecessary disclosure of personally identifiable information.
The CBK’s approval follows earlier indications from the Communications Authority of Kenya that it supports technological innovations designed to improve data privacy for mobile money users and has signalled readiness to support industry initiatives like number masking.
Broader Context
Mobile money remains one of Kenya’s most widely used digital financial services, with millions of Kenyans relying on M-Pesa for everyday transactions, savings, loans, and business payments. Ensuring users’ privacy and trust in the system is therefore central to financial inclusion and digital transformation goals.
As implementation begins, operators and merchants will need to update processing systems and customer interfaces to align with masked notification standards, while ensuring that payment accuracy and reconciliation processes remain robust and efficient.
The masked phone number feature is expected to be rolled out progressively, offering users enhanced protection without disrupting the core convenience and accessibility that have made mobile money ubiquitous in Kenya and beyond.
