Marketplace Seller Scams via M-Pesa
How fraudulent sellers on Facebook Marketplace and OLX Kenya collect M-Pesa payments for goods that are never delivered.
Part of: Marketplace Seller Scams
Last reviewed: 1 June 2026
Online marketplace fraud in Kenya almost exclusively uses M-Pesa as the payment mechanism, both because buyers trust its familiarity and because sellers can insist on payment before delivery with little friction. Fraudsters post attractive listings for electronics, motorbikes, or agricultural equipment at below-market prices, then disappear after receiving the M-Pesa transfer.
The speed of M-Pesa — money moves in seconds — means the scammer can receive payment and withdraw cash before the victim suspects anything has gone wrong. Listings are often freshly created profiles with no sales history that are deleted as soon as the fraud is complete.
How this scam works on M-Pesa
A listing appears on Facebook Marketplace, Jiji, or OLX with a compelling price — often [X]% below market rate. When the buyer enquires, the seller explains they cannot meet in person due to being upcountry, overseas, or in transit, and asks for a full or deposit M-Pesa payment before the item can be arranged for delivery or collection. Once payment is received, the seller becomes uncontactable and the listing disappears.
Some variants involve a fake escrow service: the seller claims to use a third-party hold service, provides a fake website or WhatsApp contact, and the 'escrow agent' confirms receipt — but the escrow itself is controlled by the same criminal. All payments flow to the scammer.
Common red flags
- Price significantly below current market value with no explanation
- Seller cannot meet in person and insists on M-Pesa payment before delivery
- Newly created account with no reviews, feedback, or sales history
- Escrow service provided is a WhatsApp contact or unknown website rather than a regulated service
- Seller becomes unresponsive or delays delivery with repeated excuses after payment
- Listing is removed immediately after payment is made
How to protect yourself
- Always meet in a public place and inspect goods before any payment is made
- For high-value items, use a buyer-protection platform such as M-Pesa's Lipa na M-Pesa for business-verified sellers
- Search the seller's phone number on reverse-lookup tools and Facebook — repeat scam phone numbers are often documented in warning groups
- Confirm a seller's identity by requesting a government ID and cross-referencing with their profile
- If a deal is too good to be true in your local market, assume it is fraudulent until proven otherwise
How to report it
- Report the M-Pesa number to Safaricom on 100 immediately if payment was very recent
- File a report with the DCI and provide all transaction confirmations and seller communication
- Report the listing to the marketplace platform with screenshots of the fraudulent conversation
Frequently asked questions
Is it safe to pay M-Pesa before receiving goods?
In general, paying before goods are inspected carries significant risk, especially for high-value items from unknown sellers. If you must pay in advance, limit the exposure to a small deposit and insist on a verified business till number (PayBill) rather than a personal M-Pesa number, which at least provides a documented business registration trail.