A recent report from the Communications Authority of Kenya (CA) reveals a significant increase in mobile money subscribers in the country. The third-quarter sector statistics report for the financial year 2023/2024 shows that the number of subscribers on mobile money platforms has grown to 38.7 million, achieving a penetration rate of 75%.
This surge is attributed to a policy change that removed the withdrawal codes previously required for Airtel Money customers. Before this change, Airtel Money users had to withdraw cash within seven days of receiving it from M-Pesa, or the money would be returned to the senders. Explaining the update, 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 CBK’s National Payment Strategy mandates all mobile money operators to provide a seamless customer experience, facilitating both on-network and off-network direct transactions. Under this new policy, subscribers can now transfer funds directly from M-Pesa to Airtel Money without needing withdrawal codes.
During the three months leading up to March 2024, 700,000 new subscribers joined the mobile money ecosystem, bringing the total number of users to 38.7 million, up from 38 million in December 2023. The report noted, “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.”
This increase counters a previous trend of declines that began in March 2023, when the number of subscribers was 38.4 million, falling to 38 million by June of the same year. A mild increase of 100,000 subscribers was recorded in September.
The 2024 Economic Survey by the Kenya National Bureau of Statistics indicated that Kenya lost 600,000 mobile money subscribers during the full year ending in December 2023. Despite this, the recent quarter shows a positive reversal in subscriber numbers.
In addition to the rise in mobile money subscribers, the number of active mobile (SIM) subscribers increased from 66.7 million in December 2023 to 68 million by March 2024, reflecting a penetration rate of 132.1%. This growth was driven by customer win-back campaigns during the period.
Kenya has experienced substantial growth in mobile money uptake in recent years, largely due to government efforts to promote financial inclusion. In 2023, the country’s mobile money market grossed KES 17.2 billion ($133.2 million), with M-Pesa dominating the industry with a 96.5% market share.
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