Mobile cash transactions hit Sh6.5trn in nine months
The value of cash transacted by Kenyans via mobile money platforms grew 13.2 per cent in the nine months ended September 2024.
The value of cash transacted by Kenyans via mobile money platforms grew 13.2 per cent in the nine months ended September 2024 compared to a corresponding period last year, fuelled by a transactional policy review effected by Airtel in February.
Data from the Kenya National Bureau of Statistics (KNBS) shows that Kenyans moved Sh6.5 trillion via e-money platforms in the first nine months of this year, compared to Sh5.8 trillion last year.
The rise, which reversed a 2.7 per cent dip during the nine-month period ended September last year, came at a time when Airtel Kenya scrapped a code that forced customers on the Airtel Money platform to withdraw cash within a week of receipt or see the money revert to the sender.
Kenya’s second-largest telco eliminated the restrictive code in February this year, allowing Airtel Money customers to receive money directly into their e-wallets from any network.
“This development effected on February 6, 2024, comes in response to the Central Bank of Kenya (CBK) and industry players’ collaborative efforts to ensure seamless mobile money interoperability as outlined in the CBK National Payments Strategy 2022-2025,” said Airtel at the time.
This year, mobile money subscribers sent and received the highest amount of cash in February at Sh790.8 billion, while the lowest was in September at Sh670.52 billion.
The number of mobile money accounts grew 3.4 per cent during the review period translating to an additional 2.6 million new subscriptions to bring the total to 79.4 million, while the number of active mobile money agents rose 14.4 per cent to 367,551.
In its latest review of the telecommunications sector, the Communications Authority of Kenya (CA) acknowledged the role played by the removal of the withdrawal code in driving the uptake of mobile money services.
“The removal of the withdrawal codes for transactions sent from M-Pesa to Airtel Money enabling funds to be transferred directly into the Airtel Money account could have enhanced the uptake for mobile money services,” wrote the CA.
M-Pesa is the dominant mobile money platform in the country, standing at 93.4 per cent as of June 2024, followed by Airtel Money at 6.6 per cent.
Mobile money usage has sustained its popularity in Kenya over the years, driven by increased and better network coverage by telcos as well as the ease at which subscribers can send and receive money.
Besides pushing for interoperability, the CBK has also played a key role in reducing charges on mobile money transactions.
