Kenya’s mobile money transactions rose to Sh6.5 trillion in early 2024, marking a 13.2% increase from 2023. This growth stems from Airtel Kenya’s policy changes promoting better fund retention and aligns with the Central Bank’s strategy for improved interoperability. The active subscriber base grew to 79.4 million, even as M-Pesa maintained a strong market presence.
In Kenya, mobile money transactions achieved a total of Sh6.5 trillion from January to September 2024, reflecting a substantial growth of 13.2% compared to Sh5.8 trillion during the same timeframe in 2023. This increase is partially attributable to a policy shift by Airtel Kenya in February, which eliminated restrictive withdrawal codes. Consequently, users can now maintain funds in their e-wallets without needing to withdraw them within a specified week, embodying the objectives of the Central Bank of Kenya’s National Payments Strategy for 2022-2025 aimed at enhancing mobile money interoperability.
A significant rebound is noted from a previous decline of 2.7% within the same period last year. February marked the month with the highest transaction value, totaling Sh790.8 billion, while September noted the lowest, with transactions amounting to Sh670.52 billion. The number of mobile money accounts increased by 3.4%, resulting in 2.6 million new subscriptions that brought the total to 79.4 million. Furthermore, the number of active mobile money agents experienced a notable increase of 14.4%, reaching a total of 367,551.
Airtel’s enhanced interoperability has contributed positively to the adoption of its mobile money platform; however, M-Pesa continues to dominate the market, holding a remarkable 93.4% share as of June 2024, while Airtel Money accounts for 6.6%. The mobile money sector remains a crucial component of Kenya’s financial landscape, bolstered by various regulatory initiatives aimed at reducing transaction fees and improving integration among different platforms.
Mobile money services have become integral to Kenya’s financial system, enabling millions of people to transact and manage their finances efficiently. The growth in mobile money is largely attributed to the widespread adoption of platforms like M-Pesa, alongside newer players such as Airtel Money. Regulatory frameworks established by the Central Bank of Kenya have further facilitated this growth by promoting interoperability between different mobile money systems. This has ultimately aimed to provide more options for users and enhance financial inclusion across the country.
In summary, Kenya’s mobile money landscape has demonstrated remarkable growth, evidenced by the increase in transactions to Sh6.5 trillion in the first nine months of 2024. This development is not only a reflection of policy changes aimed at enhancing user convenience but also indicative of a broader trend towards technological adaptation in financial services. The continued dominance of M-Pesa underscores the competitiveness within the mobile money segment, ultimately leading to improved financial accessibility for users across Kenya.
Original Source: www.telecomreviewafrica.com
