Mobile Money Subscribers in Kenya transacted KSh 708.06 billion in digital cash at the end of December 2022 from KSh 622.14 billion in 2021, an increase of 13.8%.
According to data from the Central Bank of Kenya(CBK) and Communication Authority of Kenya(CAK), mobile subscriptions grew to 65.7 Million in 2022 from 65.1 Million reported the preceding year, representing a penetration rate of 133.1% and a marginal increase of 0.6 Million new mobile subscribers.
The number of active mobile money agents increased by 15.5% from 275,907 to 318,607 in 2022.
The value of mobile money transactions in a month hit a record at KSh722.5 billion in July 2022, fueled by increased demand for cashless transactions and the establishment of 42,700 new active mobile money agents.
With more people embracing technology and the use of mobile phones for daily activities, and a continuously growing demand for convenient financial services, fueled by the COVID-19 pandemic, the number of active mobile subscriptions has grown.
According to CBK, in 2022, entrepreneurs recognized an opportunity in the market to provide cash deposit and withdrawal services in under-served areas, particularly in rural regions where there were limited or no mobile money agents.
In addition, last year was marked by increased activity across mobile network platforms with adoption and usage of mobile money on an upward trajectory from December 2021.
This was largely propelled by changed customer behaviour and preference for mobile platforms following the COVID-19 global pandemic, which saw increased mobile money activity.
The CBK notes said this growth underpins the fact that mobile money continues to gain popularity among businesses and public institutions, as a result, of the ease of access, efficiency, and existence of convenient delivery channels relating to mobile money.
Available mobile money payment statistics and transactions data from CBK and CAK show that over the past 15 years, mobile subscribers have increased from 11 million in 2007 to 66 million in 2022 while the number of monthly transactions has risen from 1 in 2007 to 207 in 2022.
Monthly value of transactions has increased from KSh 4 billion in 2007 to KSh 708 billion in 2022. The average daily value of transactions has increased from KSh 126 million in 2007 to KSh 23,602 million in 2022. Active mobile money agents have increased from 1,582 in 2018 to 318,607 in 2022.
Mobile penetration increased from 31% in 2007 to 133% in 2022. This increased use of mobile phones has seen banks shift most of their services and products to this platform.
Data from CBK indicates that 96% of the institutions surveyed had adopted or developed a mobile banking solution (app or USSD) for banking and customer relationship services. Only two institutions (one bank and one Microfinance Bank) have not adopted or developed a mobile banking solution (app or USSD).
Payment services are the most common functionality of the mobile banking solution with a CBK Banking Sector Innovation Survey 2022 indicating that 51% of banking institutions offered payment services within their mobile solution.
Other common services offered by most of the bank mobile banking solutions include Funds transfer, Account opening, Account management – balance inquiry, generating account mini-statements and stop payment orders, Card management. • Transfer from/to mobile wallet and Mobile credit products.
Apart from Commercial Banks, Microfinance Banks have also stepped up their efforts at moving into mobile devices and the Internet banking space so as to digitalize and bring their services closer to customers through 24/7 business access.
Microfinance Banks’ investment in technologies is also a competitive strategy, given the proliferation of Fintechs such as Digital Credit Providers (DCPs) that offer flexible access to credit, similar to those they offer.
