Kenya’s Mobile Money Transactions Reach Sh6.5 Trillion in 2024 Ahead of Market Trends

Mobile money transactions in Kenya reached Sh6.5 trillion in 2024, showing a 13.2% growth from 2023. The rise follows Airtel Kenya’s policy change that removed restrictive withdrawal codes, allowing users to retain e-wallet funds longer. Mobile money accounts increased by 3.4% to 79.4 million. M-Pesa dominates with 93.4% market share, while active agents rose by 14.4%.

In the first nine months of 2024, mobile money transactions in Kenya surged to Sh6.5 trillion, representing a remarkable increase of 13.2% compared to Sh5.8 trillion over the same period in 2023. This growth can be attributed to a pivotal policy change introduced by Airtel Kenya in February, which eliminated stringent withdrawal codes. Consequently, users are now able to maintain funds in their e-wallets for an extended period without the necessity of withdrawal within a week, a shift that aligns with the Central Bank of Kenya’s National Payments Strategy for 2022-2025, aimed at fostering mobile money interoperability.

The Kenya National Bureau of Statistics (KNBS) reported this growth as a significant rebound from a previous decline of 2.7% during the same months in the preceding year. The peak transaction value occurred in February, amounting to Sh790.8 billion, whereas September recorded the lowest at Sh670.52 billion. Additionally, the proliferation of mobile money accounts rose by 3.4%, adding 2.6 million new subscriptions to reach a total of 79.4 million, while the number of active mobile money agents also saw an impressive increase of 14.4%, totaling 367,551.

Mobile money has established itself as a fundamental component of Kenya’s financial system, supported by ongoing regulatory efforts designed to reduce transaction costs and enhance the integration of various platforms. The sector is distinguished by the dominance of services such as M-Pesa, which retained a commanding market share of 93.4% as of June 2024, contrasted by Airtel Money’s 6.6% share. This dynamic highlights a competitive environment fostered by recent policy shifts that encourage wider access and usage of mobile financial services across the country.

In summary, the mobile money sector in Kenya continues to thrive, evidenced by significant transaction volume growth and rising user engagement. The transformative policy adaptations by service providers like Airtel Kenya, coupled with favorable regulatory frameworks, have contributed to an increasingly interconnected financial ecosystem. As mobile money remains integral to Kenya’s economic landscape, the focus on interoperability and reduced transaction costs will likely spur further innovation and adoption going forward.

Original Source: www.telecomreviewafrica.com