Between January and September 2024, Kenya’s mobile money transactions rose to Sh6.5 trillion, a 13.2% increase from Sh5.8 trillion in 2023. This growth is attributed to Airtel Kenya’s policy changes and a boost in mobile money accounts and agents, reinforcing the sector’s importance in the financial ecosystem.
In the first nine months of 2024, Kenya’s mobile money transactions soared to Sh6.5 trillion, reflecting a remarkable 13.2% growth compared to Sh5.8 trillion during the corresponding period in 2023. This increase can be attributed in part to Airtel Kenya’s policy alteration in February, which eliminated restrictive withdrawal codes, thereby allowing users to hold funds in their e-wallets without the previous urgency of withdrawing within a week. This change aligns with the Central Bank of Kenya’s National Payments Strategy 2022-2025, aimed at enhancing mobile money interoperability. The Kenya National Bureau of Statistics (KNBS) reported this growth follows a recovery from a prior decline of 2.7% during the same period last year.
February was noted as the peak month for transaction value, reaching Sh790.8 billion, while September marked the lowest value at Sh670.52 billion. Additionally, the number of mobile money accounts increased by 3.4%, resulting in an addition of 2.6 million subscriptions, culminating in a total of 79.4 million accounts. Active mobile money agents also experienced a notable growth of 14.4%, now numbering 367,551. Although Airtel’s improved interoperability has positively impacted its platform adoption, M-Pesa continues to dominate the market with a substantial 93.4% share, while Airtel Money maintains a 6.6% share. This scenario highlights the critical role mobile money plays in Kenya’s financial ecosystem, bolstered by regulatory initiatives designed to decrease transaction costs and enhance platform integration.
Mobile money has become an integral aspect of Kenya’s financial landscape, facilitating seamless transactions and financial inclusion for millions. The Central Bank of Kenya’s initiatives, particularly the National Payments Strategy 2022-2025, focus on enhancing the interoperability of mobile money services, aiming to integrate various platforms and improve user experience. The removal of restrictive withdrawal policies by Airtel Kenya has further stimulated growth in this sector, reflecting a broader trend of increasing reliance on mobile financial services. With the rise in number of active accounts and agents, mobile money continues to play a pivotal role in the country’s economy, signifying a shift towards digital financial solutions.
In summary, Kenya’s mobile money sector has demonstrated robust growth, achieving Sh6.5 trillion in transactions within the first three quarters of 2024. The removal of restrictive withdrawal policies by Airtel Kenya has significantly contributed to this increase, complementing the Central Bank’s efforts to promote mobile payment interoperability. The upward trajectory in account subscriptions and active agents underscores the vital role that mobile money services play in enhancing financial inclusion and supporting economic activities across the region.
Original Source: www.telecomreviewafrica.com
