Kenya’s mobile money transactions surged to Sh6.5 trillion in January to September 2024, a 13.2% increase from the previous year, driven by policy changes at Airtel Kenya. Despite a competitive landscape, M-Pesa retains a market share of 93.4%. Significantly, the number of mobile money accounts rose by 3.4% to 79.4 million, highlighting the sector’s growth and regulatory support efforts.
Between January and September 2024, mobile money transactions in Kenya skyrocketed to Sh6.5 trillion, marking a 13.2% increase compared to Sh5.8 trillion during the same timeframe in the previous year. This growth was significantly influenced by Airtel Kenya’s strategic change in policy implemented in February, which eliminated restrictive withdrawal codes. Consequently, users are now permitted to maintain funds in their e-wallets beyond the previous one-week limit, which aligns with the Central Bank of Kenya’s National Payments Strategy for 2022-2025 aimed at bolstering mobile money interoperability.
The latest statistics from the Kenya National Bureau of Statistics (KNBS) reveal a remarkable recovery from a 2.7% decline in the same period the previous year. The peak transaction value was recorded in February at Sh790.8 billion, while September showed the lowest activity at Sh670.52 billion. Additional statistics indicate a 3.4% rise in mobile money accounts, contributing approximately 2.6 million new subscriptions, bringing the total to 79.4 million. Furthermore, active mobile money agents increased by 14.4%, reaching a total of 367,551.
Despite the advancements made by Airtel in interoperability, M-Pesa continues to dominate the market with a significant 93.4% share as of June 2024, leaving Airtel Money with a smaller 6.6%. Mobile money remains a vital component of Kenya’s financial landscape, supported by regulatory measures that aim to reduce transaction costs while enhancing platform connectivity.
Mobile money has become an integral part of Kenya’s financial system, significantly impacting economic activities and supporting financial inclusion. The increase in transaction values indicates consumer trust and the effectiveness of mobile financial solutions. Regulatory frameworks such as the Central Bank of Kenya’s National Payments Strategy aim to foster a conducive environment for mobile money services to thrive. This is particularly evident with Airtel Kenya’s recent policy changes, which illustrate the ongoing evolution of this sector.
In conclusion, the remarkable growth in Kenya’s mobile money transactions, reaching Sh6.5 trillion in 2024, underscores the sector’s resilience and adaptability, particularly in response to regulatory reforms. Airtel Kenya’s policy change has played a crucial role in enhancing user convenience, contributing to a broader acceptance of mobile money services. The data illustrates a strong upward trajectory in account growth and transaction values, reinforcing the foundational role of mobile money in Kenya’s economy.
Original Source: www.telecomreviewafrica.com
