Escrow works by inserting a trusted, independent party between a buyer and a seller so that neither one has to hand over money or goods first and simply hope the other side follows through.

The fraud pattern escrow disrupts: Most online fraud follows a simple pattern: one party is convinced to pay first, then the other party disappears. Escrow breaks this pattern by removing the buyer's money from direct seller access until delivery is confirmed.

Step 1: Agreement. The buyer and seller agree on the terms of the deal, including price, delivery timeline and what counts as successful completion.

Step 2: Funding. The buyer deposits the agreed amount into the LockPesa escrow account, where it is held securely and is not yet accessible to the seller.

Step 3: Delivery. The seller delivers the goods or completes the service, knowing the money is already secured and cannot be withdrawn by the buyer at the last minute.

Step 4: Confirmation. The buyer confirms that everything was delivered as agreed.

Step 5: Release. LockPesa releases the funds to the seller. If there is a dispute instead, the funds stay locked until the disagreement is resolved.

Every LockPesa transaction is tracked from the moment funds are deposited to the moment they are released, giving both parties a clear record they can refer back to if a question ever comes up.

Before your next a transaction, especially with someone you are dealing with for the first time, consider running it through LockPesa. The small extra step of using escrow can save you from a costly loss.

Escrow is not a new invention, it has protected large real estate and business deals for decades in many countries, handled by lawyers and banks. What LockPesa has done differently is bring that same protective structure down to everyday Kenyan transactions, integrating it with the mobile money habits people already use daily, and removing the legal fees that once made escrow feel out of reach for ordinary buyers, sellers and small business owners.

It is worth remembering that escrow is not about assuming the worst of the other party, most transactions, even between strangers, complete without any issue at all. Rather, escrow is about removing the small but real chance of loss so that both sides can negotiate, agree and complete a deal with full confidence, rather than hesitation. As more Kenyans transact with people outside their immediate circle of family, friends and known business contacts, that confidence becomes increasingly valuable, whether the deal is worth a few thousand shillings or several million.

Take a moment to explain the process to the other party before you begin, since a transaction goes far more smoothly when both sides understand why the funds are being held and when they will be released.