Kenya’s mobile money transactions surged to Sh6.5 trillion in early 2024, marking a 13.2% rise from the previous year. This growth followed Airtel Kenya’s removal of withdrawal restrictions, enhancing user retention. Additionally, mobile money accounts increased by 3.4%, signaling ongoing market expansion despite M-Pesa’s continued dominance with a 93.4% market share.
Mobile money transactions in Kenya reached an impressive Sh6.5 trillion from January to September 2024, reflecting a robust 13.2% increase compared to Sh5.8 trillion within the same timeframe in 2023. This surge was significantly influenced by Airtel Kenya’s strategic policy change in February, which lifted former restrictions on withdrawal codes, permitting users to maintain funds in their e-wallets without the requirement of weekly withdrawals. This aligns seamlessly with the Central Bank of Kenya’s (CBK) National Payments Strategy 2022-2025 aimed at enhancing interoperability across mobile money systems.
The recovery is notable, especially when contrasted with a previous 2.7% decline recorded in the same period of the prior year. February experienced the highest transaction value, amassing Sh790.8 billion, while September recorded a lower figure of Sh670.52 billion. Additionally, the total number of mobile money accounts rose by 3.4%, contributing 2.6 million new subscriptions to achieve a cumulative total of 79.4 million. Moreover, the active mobile money agents surged by 14.4%, reaching 367,551 individuals.
Airtel’s advancement in interoperability significantly propelled the uptake of its mobile money services; however, M-Pesa continues to dominate the market with a commanding share of 93.4% as of June 2024, while Airtel Money retains a 6.6% share. The mobile money sector remains a pivotal component of Kenya’s financial framework, bolstered by regulatory measures designed to reduce transaction costs and enhance the integration of various platforms.
The mobile money sector in Kenya plays a crucial role in the nation’s economy, providing access to financial services for millions without traditional banking infrastructure. Over the years, it has evolved significantly, largely driven by innovations and regulatory frameworks aimed at cultivating inclusivity and interoperability among different platforms. This recent growth in mobile money transactions reflects broader trends in financial technology, where convenience and accessibility are paramount. The Central Bank of Kenya has actively worked to enhance these systems, encouraging practices that promote user retention and seamless transactions.
In summary, Kenya’s mobile money transactions have demonstrated remarkable growth, reaching Sh6.5 trillion between January and September 2024. This increase highlights the successful implementation of regulatory strategies and policy changes that promote user engagement and interoperability within mobile platforms. M-Pesa maintains a significant market presence, yet the advancements made by Airtel Kenya indicate a competitive and evolving financial landscape. The ongoing development in mobile money continues to solidify its importance within Kenya’s financial infrastructure.
Original Source: www.telecomreviewafrica.com
