Kenya Sees Surge in Mobile Money Subscribers, Reaches 38.7 Million

Kenya’s mobile money landscape is experiencing significant growth, according to a recent report by the Communications Authority of Kenya (CA). The number of mobile money subscribers has risen to 38.7 million, reflecting a penetration rate of 75%. This surge is detailed in the third-quarter sector statistics report for the financial year 2023/2024.

The report attributes this growth to the removal of withdrawal codes that previously required Airtel Money customers to withdraw cash within seven days of receiving it from M-Pesa, or the money would be returned to the senders. Airtel announced this change, effective February 6, 2024, 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 Payment Strategy 2022-2025.

The CBK’s National Payment Strategy mandates that all mobile money operators ensure a seamless customer experience, allowing both on-network and off-network direct transactions. Under the new policy by the CA, subscribers can now transfer funds directly from M-Pesa to Airtel Money without the need for withdrawal codes.

During the three months leading to March 2024, 700,000 new subscribers joined the mobile money ecosystem, bringing the total to 38.7 million, up from 38 million in December 2023. Despite this growth in subscriptions, the penetration rate saw a slight decline due to a review of the population denominator following the release of the 2024 Economic Survey.

The CA’s report also notes a reversal of the declining trend that began in March 2023 when the number of subscribers was 38.4 million, falling to 38 million by June 2023, and then slightly increasing by 100,000 in September 2023. The 2024 Economic Survey by the Kenya National Bureau of Statistics reported that Kenya lost 600,000 mobile money subscribers during the full year leading to December 2023.

In addition to the rise in mobile money subscribers, active mobile (SIM) subscribers increased from 66.7 million in December 2023 to 68 million by March 2024, representing a penetration rate of 132.1%. This growth was fuelled by customer win-back campaigns conducted during the period.

Kenya has seen significant growth in mobile money uptake in recent years, supported by the government’s efforts to drive financial inclusion. In 2023, the country’s mobile money market grossed KES 17.2 billion ($133.2 million), with M-Pesa leading the industry with a dominant 96.5% market share.

This surge in mobile money subscribers underscores Kenya’s position as a leader in financial innovation, reflecting the country’s ongoing commitment to expanding financial access and inclusion through technology.

Main Image: The Star