This paper aims to examine the contribution and implications of mobile water payments (MWPs) for water bill collection at MWAUWASA. The study focused in testing three variables namely; MWPs adoption rate by customers, benefits of MWPs for water services and challenges facing MWPs for water services. Both qualitative and quantitative analytical techniques were used to collect data from a purposively selected sample of 75 MWAUWASA officials and 100 water bill payers. The trend of M-Pesa adoption has been increasing though at a lower pace and revenue collection efficiency has increased too, but still over 60% of customers are paying through cash, the challenges that hinders them being inefficiency of the M-Pesa payment system. The study recommends that MWAUWASA should focus on delivering quality M-Pesa system that meets the client’s needs and more sensitization to customers should be done about usage of M-Pesa and adoption of a cashless system is advised.