Mobile money agents handle less cash despite surge in transactions as low-value transfers rise

Mobile money agents in Kenya processed less cash in early 2025, despite a rise in user transactions. (Photo: File)

By Lucy Mumbi
Monday, May 19, 2025

During the quarter under review, mobile money subscriptions rose by 7.27 million to hit 85 million, while an additional 89,389 active agents were brought into the ecosystem, raising the number of agents to 410,115.

Kenya’s mobile money agents handled less cash in the first three months of 2025, even as more users conducted transactions.

According to data from the Kenya National Bureau of Statistics (KNBS), the value of cash processed by agents dropped 12.1 per cent to Sh2.04 trillion, while the number of transactions rose 38.1 per cent, highlighting a shift toward smaller, low-value transfers amid economic pressures.

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The decline in value, down from Sh2.32 trillion in the same period last year, comes at a time when the volume of transactions jumped from 632.7 million to 873.9 million. The pattern points to growing consumer preference for low-value transactions, often aimed at avoiding service fees charged by mobile money providers.

The performance also signals a possible migration of high-value transactions from mobile money agents to alternative financial service providers such as banks.

Many mobile money users, who previously depended on agents to deposit cash, are now using bank-linked services to deposit money directly into their mobile wallets.

“The performance in the first quarter also comes amid increased popularity of low-value transactions, which are not chargeable. Those sending money in small amounts of less than Sh100 in multiple transactions are able to avoid paying charges which start from a few shillings to hundreds of shillings,” reads the KNBS report.

“A mobile money subscriber can take a few minutes to send hundreds of shillings at Sh100 per transaction, avoiding the fees charged by banks and telcos.”

During the quarter under review, mobile money subscriptions rose by 7.27 million to hit 85 million, while an additional 89,389 active agents were brought into the ecosystem, raising the number of agents to 410,115.

Number of agents

Meanwhile, KNBS data for 2024 shows that the number of mobile money transfer agents rose to 395,400, reflecting a 20.9 per cent increase. At the same time, mobile money transfer service subscribers grew by 11.3 per cent to reach 42.3 million, resulting in a penetration rate of 80.7 per 100 inhabitants.

The value of subscriber-to-subscriber transfers rose sharply by 24.8 per cent to Sh6.8 billion, indicating increased activity among individual users. However, total deposits through agents declined marginally by 1.0 per cent, falling from Sh6.122 trillion in 2023 to Sh6.062 trillion in 2024.

The total value of mobile money transfers increased by 9.4 per cent to Sh8.7 trillion, while the number of transactions rose by 10.6 per cent to 2.7 billion. This reinforces the trend of growing mobile money use across the country.

Mobile commerce also continued on an upward trajectory, with the value of payments for goods and services through mobile money rising by 6.1 per cent to Sh22.0 trillion in 2024, underlining the growing consumer shift to digital payments.

Mobile subscriptions, which include both voice and data users, increased from 66.7 million in 2023 to 71.4 million in 2024. The growth pushed mobile penetration per 100 inhabitants from 129.5 in 2023 to 136.1 in 2024, further supporting the rise in mobile financial services usage.

The current dip in agent-handled cash reverses the rebound witnessed in the full year ended December, during which mobile money transaction values grew by 9.4 per cent to Sh8.7 trillion, up from Sh7.95 trillion in 2023.