M-Pesa boom raises cybersecurity risks, Mastercard warns

Nairobi, Kenya – As mobile money usage soars in Kenya, the country faces rising cybersecurity risks, according to Mastercard. In its Africa Cybersecurity White Paper, the financial services giant warns that Kenya's reliance on mobile money, especially the popular service M-Pesa, could make it an attractive target for cybercriminals.

Mastercard identifies Kenya alongside Nigeria, South Africa, and Morocco as markets where cyber threats account for more than half of the continent's activity. Kenya's digital economy is growing rapidly, with mobile money usage increasing sixfold between 2016 and 2025, e-commerce activity rising fourfold, and digital banking users growing four-and-a-half times.

The rapid expansion of the digital economy is outpacing efforts to strengthen cybersecurity defenses. Shabir Ahmed, Senior Vice President of Mastercard's Customer Solutions Center Lead for Africa, emphasized that mobile money has become "national infrastructure" in Kenya, creating additional vulnerabilities beyond traditional banking systems.

The report projects that Africa's digital economy could reach $1.5 trillion by 2030, highlighting the need to secure financial transactions, customer data, and interconnected digital services. Mastercard warns that expanding digital activity creates more opportunities for attackers, noting that technology, public institutions, and financial services are major targets due to their holding of personal information, business systems, and financial assets.

The report also highlights that smaller businesses, which make up about 95 percent of registered businesses in Africa and account for roughly half of the continent's GDP, are particularly vulnerable due to their typically limited cybersecurity investments. To combat rising cyber threats, Mastercard stresses the need to invest not just in technology but also in skills development, governance, regulation, infrastructure, and cross-border cooperation.

The cybersecurity workforce shortage is a critical issue, with approximately 200,000 unfilled cybersecurity roles across Africa. As governments and businesses strive to expand digital financial inclusion while protecting consumer confidence, addressing these vulnerabilities becomes increasingly crucial.