Grace Ashiru
A new report released by the Communications Authority of Kenya (CA) indicates a surge in the number of mobile money subscribers in Kenya. According to the report, subscribers on mobile money platforms grew to 38.7 million, reflecting a penetration rate of 75%. The third-quarter sector statistics report for the financial year 2023/2024 attributed 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.
Explaining the removal at the time, Airtel stated, “This development, effective February 6, 2024, comes 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 National Payment Strategy by the CBK mandates all mobile money operators to ensure a seamless customer experience, allowing both on-network and off-network direct transactions.
Under the new policy by the CA, subscribers can transfer funds directly from M-Pesa to Airtel Money without the need for withdrawal codes.
The report revealed that during the three months leading to March 2024, 700,000 new subscribers were onboarded into the mobile money ecosystem.
That number brings the total number of customers to 38.7 million, an increase from the 38 million recorded in December 2023.
“Although there was growth in subscriptions, the penetration rate dropped due to a review of the denominator on population following the release of the 2024 Economic Survey,” a part of the CA’s latest report read.
This growth goes against a trend of declines that began in March 2023, when the number was 38.4 million, before falling to 38 million by June of the same year. In September of the same year, that number experienced a mild increase of 100,000.
According to the 2024 Economic Survey by the Kenya National Bureau of Statistics, the eastern African nation shed 600,000 mobile money subscribers during the full year 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 fueled by customer win-back campaigns conducted during the period.
In recent years, Kenya has experienced significant growth in mobile money uptake, largely 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.
