Mobile money transactions jump to Sh8.7 trillion after slow growth in 2023
The previous year saw mobile money growth slow to its lowest rate in four years, largely due to a 25 per cent hike in taxes on transactions.
Mobile money transactions in Kenya surged by 9.4 per cent in the year ending December 2024, reaching a total value of Sh8.7 trillion, according to data from the Central Bank of Kenya (CBK).
This rebound follows a much slower growth of just 0.6 per cent the previous year.
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The latest figures show an increase from Sh7.95 trillion in the year ending December 2023, signalling a strong recovery after a challenging 2023.
The previous year saw mobile money growth slow to its lowest rate in four years, largely due to a 25 per cent hike in taxes on transactions implemented by the government in the second half of 2023.
This tax increase made sending money more expensive and discouraged some users. In contrast, the year 2024 saw a boost in transaction volumes, partly due to regulatory changes, including the scrapping of a code that required Airtel Money users to withdraw their funds within a week or risk losing them.
Airtel lifted this restriction in February 2024, allowing users to receive money from any registered mobile money platform without the withdrawal deadline.
This move was seen as a key factor in boosting the platform's performance, with many Airtel subscribers benefiting from the convenience of receiving funds through M-Pesa, the dominant mobile money service in the country.
Increased transaction volumes
According to the Communications Authority of Kenya (CA), the removal of the withdrawal deadline was crucial in increasing transaction volumes.
In 2024, the highest monthly transaction value occurred in February, with agents handling Sh790.8 billion, while the lowest was in September at Sh670.5 billion.
Despite the increase in transaction volumes, Airtel raised charges for sending and receiving cash across networks, following the introduction of a 15 per cent excise tax on transaction fees by mobile money providers.
M-Pesa, which holds more than 92 per cent of the market share in mobile money transactions, continues to be the dominant platform in Kenya.
Its success is also reflected in the performance of its parent company, Safaricom, which reported a 16.6 per cent increase in M-Pesa revenue to Sh77.22 billion for the half-year ending September 2024.
This growth was driven by a 13.1 per cent rise in average revenue per user to Sh389.27.
The growth of mobile money services can be attributed to improved network coverage and the ease with which users can send and receive money.
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