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Yes, SHA Can Deduct Money From Your M-Pesa Balance—Here’s How It Works

Safaricom PLC has provided an official explanation regarding how the Social Health Authority can process M-Pesa deductions without requiring customers to enter their personal identification numbers, following public inquiries about the payment mechanism.

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The clarification came on Monday, January 12, after an M-Pesa user raised questions on social media about automatic deductions from his mobile money account linked to SHA’s Lipa Mdogo Mdogo payment plan.

Customer Raises Authorization Concerns

The inquiry was posted by a user who expressed concern about funds being withdrawn from his M-Pesa wallet without the standard PIN entry requirement that typically accompanies mobile money transactions. The customer indicated that these deductions began occurring after he enrolled in SHA’s installment payment service, known as Lipa Mdogo Mdogo.

The user’s public question highlighted broader concerns among Kenyans about transaction authorization protocols and how automated payments function within the M-Pesa ecosystem, particularly for government-mandated health insurance contributions.

“We need clarification on how this authorization works,” the customer stated in his social media post directed at the telecommunications company.

Standing Order Service Enables Direct Deductions

In its official response, Safaricom confirmed that direct deductions without PIN prompts are indeed possible under specific circumstances within its mobile money platform. The company pointed to M-Pesa Ratiba, its standing order service, as the mechanism enabling such transactions.

According to Safaricom’s explanation, when customers activate M-Pesa Ratiba and authorize SHA for automatic deductions, the system can process payments without requiring PIN entry for each individual transaction. This functionality is designed to facilitate recurring payments without manual intervention for every installment.

“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,” the telecommunications provider stated in its response.

Understanding M-Pesa Ratiba Functionality

M-Pesa Ratiba represents Safaricom’s automated payment solution that allows users to schedule recurring transactions. The service is designed to streamline regular payments such as utility bills, loan repayments, and now health insurance contributions without requiring users to manually initiate each transaction.

When customers set up a standing order through M-Pesa Ratiba, they provide one-time authorization for specified deductions to occur automatically at predetermined intervals. This initial authorization eliminates the need for PIN entry during subsequent scheduled payments.

The service offers convenience for users managing regular financial obligations, though it requires customers to actively configure and authorize the standing order during the initial setup process.

Implications for SHA Payment System

The clarification comes as Kenya’s Social Health Authority continues implementing its universal health coverage program, which includes various payment options for contributors. The Lipa Mdogo Mdogo scheme specifically targets individuals who prefer making smaller, regular installment payments rather than lump-sum contributions.

The integration between SHA’s payment requirements and Safaricom’s M-Pesa platform reflects the growing digitization of government service payments in Kenya. However, the exchange also highlights the importance of clear communication regarding how automated payment systems function and what authorization customers provide during enrollment processes.

Customer Education and Transparency

The public exchange underscores ongoing questions about digital payment transparency and user control over mobile money accounts. As more government services integrate with mobile money platforms, understanding the terms and conditions of automated payment arrangements becomes increasingly important for consumers.

Customers who wish to modify or cancel standing orders through M-Pesa Ratiba can typically do so through their M-Pesa menu options or by contacting Safaricom customer service directly.

The incident serves as a reminder for M-Pesa users to carefully review authorization requests during service enrollment and to understand the implications of activating standing order features for recurring payments.

Safaricom has not indicated any changes to its M-Pesa Ratiba service following the inquiry, suggesting the current functionality operates as designed within the platform’s terms of service.