Kenya’s Mobile Money Transactions Surge to Sh6.5 Trillion in 2024
Kenya’s mobile money transactions reached Sh6.5 trillion between January and September 2024, marking a 13.2% increase from the previous year. The growth is attributed to Airtel Kenya’s policy change that allows users to retain funds longer in their wallets. The sector experienced a significant recovery from previous declines, with a rise in accounts and active agents, maintaining M-Pesa’s dominant market share.
In the period from January to September 2024, mobile money transactions in Kenya reached an impressive Sh6.5 trillion, reflecting a 13.2% growth compared to Sh5.8 trillion during the same timeframe in 2023. This remarkable increase can be attributed to a significant policy change by Airtel Kenya in February, which eliminated restrictive withdrawal codes and permitted users to keep funds within their e-wallets indefinitely. This adjustment aligns with the Central Bank of Kenya’s (CBK) National Payments Strategy 2022-2025, aimed at enhancing mobile money interoperability across various platforms.
According to the Kenya National Bureau of Statistics (KNBS), mobile money transactions have rebounded sharply, recovering from a 2.7% decline observed in the previous year. Notably, February 2024 experienced the highest transaction value at Sh790.8 billion, while September recorded a lower value of Sh670.52 billion. The total number of mobile money accounts surged by 3.4%, adding 2.6 million subscriptions to reach a total of 79.4 million accounts. Furthermore, the number of active mobile money agents rose significantly by 14.4%, reaching a total of 367,551 agents nationwide.
The improved interoperability introduced by Airtel has considerably bolstered the adoption of its mobile platform; nonetheless, M-Pesa continues to dominate the market, holding a substantial 93.4% market share as of June 2024, while Airtel Money captured a 6.6% share. The mobile money sector remains a cornerstone of Kenya’s financial ecosystem, supported by regulatory measures designed to minimize transaction costs and improve integration among various platforms.
Mobile money has become a transformative force within the Kenyan financial landscape, providing a convenient and accessible method for financial transactions for millions. Since its inception, the mobile money market has experienced exponential growth, driven by innovations and regulatory support aimed at enhancing transaction efficiency and reducing barriers to entry. The Central Bank of Kenya has been instrumental in these developments, promoting strategies that encourage interoperability and an increase in competitive offerings among service providers. In particular, Airtel’s recent policy changes have unlocked new potentials for user engagement and retention, illustrating the dynamic nature of this sector amid rapidly changing consumer demands and technological advancements.
In conclusion, Kenya’s mobile money ecosystem is witnessing significant growth, with a notable increase in transaction volumes and service subscriptions. The policy changes implemented by Airtel Kenya have played a pivotal role in this growth, facilitating a more user-friendly experience. Despite the competitive environment, M-Pesa maintains its stronghold in the market. Overall, mobile money continues to be a vital component of Kenya’s financial system, highlighting the importance of ongoing regulatory support to enhance service delivery and integration across platforms.
Original Source: www.telecomreviewafrica.com
