Mobile Money subscribers in Kenya see an increase following the elimination of Airtel codes
In a notable development, the number of mobile money subscribers in Kenya has reached an impressive 38.7 million, according to the latest report by the Communications Authority of Kenya (CA). This figure represents a growth from the 38 million recorded in December 2023, marking a penetration rate of 75%.
The surge in subscribers can be attributed to several factors. One significant contributor was the removal of withdrawal codes for Airtel Money customers, a move that was part of collaborative efforts by the Central Bank of Kenya (CBK) and industry players. This decision has made mobile money transactions more accessible and user-friendly, encouraging more people to join the mobile money ecosystem.
During the three months leading to March 2024, a staggering 700,000 new subscribers were onboarded, further fueling the growth. The increase in active mobile (SIM) subscribers also played a role, with the number rising from 66.7 million in December 2023 to 68 million by March 2024, representing a penetration rate of 132.1%.
M-Pesa, the dominant player in Kenya's mobile money industry, continues to hold a significant market share, accounting for 96.5% in 2023. The industry grossed KES 17.2 billion ($133.2 million) in 2023, demonstrating the sector's growing importance in Kenya's economy.
The growth in mobile money subscribers is a testament to Kenya's commitment to financial inclusion. The government's efforts to drive this initiative have been instrumental in the sector's success. For instance, 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.
However, it's worth noting that the penetration rate dropped due to a review of the denominator on population following the release of the 2024 Economic Survey. Despite this dip, the overall growth trend remains positive, with the number of mobile money subscribers showing a steady increase.
Key partnerships, such as TRANSFAST's collaboration with three Kenyan banks for instant deposits via M-PESA, exemplify ongoing efforts to enhance mobile money transfer efficiency. These collaborations, which have been evolving over the past decade, have led to significant developments, including the integration of mobile money services into broader financial ecosystems and the licensing of new digital credit providers around 2023 to 2025.
In conclusion, Kenya's mobile money sector continues to thrive, with subscriber numbers reaching an all-time high of 38.7 million. The government's focus on financial inclusion, coupled with industry collaborations, has played a crucial role in this growth. As the sector continues to evolve, it is expected that more innovations will be introduced to further improve the mobile money experience for Kenyans.
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