Money agents transactions by Kenyans hit Sh8.7 trillion in 2024 - CBK
Mobile transactions jumped 9.3 per cent from the previous year’s total of Sh7.95 trillion.
Kenyans transacted a record Sh8.69 trillion through mobile money agents in the year leading up to December 2024, a figure that arguably points towards growing financial inclusion.
Data from the Central Bank of Kenya (CBK) shows that mobile transactions jumped 9.3 per cent from the previous year’s total of Sh7.95 trillion.
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Although the apex bank did not give substantive reasons for the increase, it could be attributed to the expanding network of money agents, driven by the country’s ongoing financial inclusion initiatives.
Figures by the regulator show the number of agents closed the year under review at 381,116, compared to 322,404 in the previous year, a representation of an 18.2 per cent jump.
Mobile money adoption
Some experts in the country have since argued that the rising number of money agents reflects the growing adoption of mobile money services and digital transactions, which have increasingly become integral to the daily lives of many Kenyans.
Additionally, the increasing adoption of mobile money by businesses has driven growth.
Many small and medium-sized enterprises have reportedly shifted towards digital payments due to their convenience, security and efficiency with the trend leading to a steady increase in the number of businesses accepting and processing payments via mobile money platforms.
Ideally, as more people gain access to financial services, even in remote areas, the volume of money moved across various platforms continues to grow, signalling a shift towards a more cashless economy.
The transactions fluctuated month by month throughout the year, with February recording the highest value at Sh790.8 billion, while September saw the lowest transaction value at Sh670.5 billion.
The fluctuations were driven by factors including seasonal business patterns, tax changes, and shifts in mobile money fees.
The recovery in 2024 stands in stark contrast to the modest 0.6 per cent growth observed in 2023, the lowest in four years.
Notably, the sluggish growth in 2023 was primarily attributed to a 25 per cent hike in taxes on mobile money transactions, which made sending and receiving money more costly.
As of September 2024, M-Pesa continued to dominate Kenya’s mobile money sector, with data by the industry regulator showing the mobile money firm commands 92.3 per cent of the market.
Airtel Money holds the second position with 7.6 per cent, showing a modest increase from 6.6 per cent in June 2024.
Meanwhile, Telkom Kenya's T-Kash struggles to make a significant impact, capturing less than one per cent of the market.
M-Pesa’s stronghold is largely attributed to its vast agent network, extensive market reach, and seamless integration with businesses and financial services.
While Airtel Money has seen some growth, it still faces significant hurdles in competing with Safaricom’s entrenched ecosystem.
The removal of the restrictive withdrawal code arguably helped Airtel Money expand its share.
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