Many Kenyans assume that when a loved one dies, the money in their M-Pesa wallet or bank account automatically becomes available to the next of kin. However, that is not how the law works.
Once a financial institution is notified of a person’s death, both M-Pesa and bank accounts are immediately frozen to protect the deceased’s estate from unauthorized withdrawals or fraudulent transactions. This means that even close family members cannot access the funds until the legal succession process has been followed.
How M-Pesa Money Is Claimed
When Safaricom receives notification that an M-Pesa customer has died, the account is suspended immediately. Before any money can be released, the rightful claimant must provide the required legal documents.
These typically include a death certificate, a valid national ID or passport, and court-issued Letters of Administration or a Grant of Probate, depending on whether the deceased left a valid will.
For smaller balances of less than KSh200,000, the process may be simpler. In some cases, a letter from the local chief together with an affidavit may be accepted to facilitate the claim.
If the money remains unclaimed for two years, Safaricom transfers the balance to the Unclaimed Financial Assets Authority (UFAA), where beneficiaries can still make a claim by following the authority’s procedures.
One important fact that surprises many people is that outstanding M-Pesa loans, including Fuliza and M-Shwari debts, are generally not inherited by family members simply because they are relatives. The obligations are handled according to the applicable loan terms and the administration of the deceased’s estate rather than automatically passing to next of kin.
What Happens to Bank Accounts?
The process is similar for bank accounts. Once a bank is informed that an account holder has passed away, it freezes the account to safeguard the funds.
The money can only be accessed after the court appoints an executor or administrator of the estate. The appointed person must present a Grant of Probate or Letters of Administration before the bank can release or distribute the funds in accordance with the law.
If a bank account remains dormant and unclaimed for five years, the money is also transferred to the Unclaimed Financial Assets Authority, where it is held until a rightful claimant comes forward.
Why the Rules Exist
These legal procedures are designed to ensure that a deceased person’s assets are distributed fairly and lawfully. They help prevent fraud, family disputes, and unauthorized withdrawals while protecting the rights of all beneficiaries.
For many families, understanding these requirements before tragedy strikes can make the succession process smoother and less stressful. Keeping important documents organized and discussing estate planning with loved ones can save families significant time, legal costs, and emotional hardship in the future.
