Uber stops accepting Visa cards in Kenya, pushes M-PESA and cash

Uber has stopped accepting Visa cards in Kenya effective January 2026, cutting off a key payment option for business travelers and expatriates in East Africa's largest e-hailing market. The company confirmed the decision in a statement to TechCabal, citing rising global payment costs. "Payment costs globally are on the rise, which impacts businesses and their consumers," an Uber spokesperson said. "We regularly review our payment methods on a market-by-market basis to ensure we're keeping costs reasonable while balancing any potential impact on consumer experience."

The move reflects a broader shift as global platforms adapt to African payment economics. Cross-border card fees have risen while local payment rails dominate daily spending. In Kenya, where mobile money transactions reached KES 636.2 billion ($4.93 billion) in the 12 months to February 2025 according to Central Bank of Kenya data, Uber is prioritizing M-PESA and cash while pushing international cards to the margins. Visa transactions were routed offshore under Uber's global merchant-of-record structure, carrying foreign exchange spreads, interchange fees, and scheme charges that intensified with high global interest rates and volatile currencies. Local wallets settle instantly in shillings without cross-border costs.

M-PESA now allows direct debits from riders and near-instant payouts to drivers, reducing chargebacks and disputes common with cards. The service has 84.6 million subscriptions with 394,853 active agents nationwide. However, corporate riders who rely on credit cards for expense claims, rewards, or float face friction since cash and mobile wallets don't fit all company travel policies. Mastercard continues to work on Uber Kenya. The decision reverses Uber's early Nairobi strategy when card payments signaled trust in a cash-heavy city, and dents years of promotion by local lenders like KCB and Equity that positioned Visa as the gateway to online services with ride-hailing as a flagship use case.

SOURCE: https://techcabal.com/2026/01/13/uber-stops-accepting-visa-cards-in-kenya/