Mobile Money Uptake In Kenya Grows to 39.8m Subscribers

Mobile money uptake in Kenya continues to rise, with subscriptions increasing to 39.8 million between April and June 2024, according to a new report by the Communications Authority of Kenya (CA).

This marks a growth from the 38.7 million subscribers recorded in the first quarter of the year, highlighting the country’s expanding mobile money ecosystem.

As of June 30, 2024, mobile money penetration stood at 77.3 percent, correlating with an uptick in mobile SIM subscriptions, which reached 68.9 million, translating to a 133.7 percent penetration rate.

The CA report credits the increase in mobile money subscriptions to several factors, including improvements in telecommunications infrastructure and greater smartphone adoption across the country.

“This increase is directly proportional to the increase in mobile (SIM) subscriptions. However, the removal of withdrawal codes for transactions sent from M-PESA,” read the report by CA in part.

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A significant contributor to the surge in mobile money usage was the removal of withdrawal codes for transactions sent from M-Pesa to Airtel Money, allowing for seamless transfers between the two services.

This feature, introduced earlier in the year, has bolstered the adoption of mobile money services, particularly for users transferring funds between M-Pesa and Airtel Money wallets.

According to the report, M-Pesa remains the dominant player in Kenya’s mobile money market, commanding 96.5 percent of the market share.

The report also noted a rise in the number of registered mobile money agents, which grew from 339,282 in the first quarter of 2024 to 347,699 by the end of June.

CA noted that this expansion of agent networks is crucial in ensuring the accessibility of mobile money services, particularly in rural and underserved areas.

Kenya has been experiencing significant growth in mobile money usage, supported by government efforts to enhance financial inclusion.

In 2023, the mobile money market reached $133.2 million (Sh17,242,740,000), with M-Pesa holding a dominant 96.5 percent market share.”