The mobile money landscape in Kenya has seen a massive rebound in subscriber numbers after Airtel removed the restrictive transfer code. This innovation had been instrumental in re-developing the sector, which was fast losing the number of users over the past year.
According to a new sector statistics report released by the Communications Authority of Kenya, 700,000 more subscribers were accounted for in mobile money during the first quarter of this year, thus pushing the total number of subscribers to 38.7 million users as of the end of March, from 38 million at the close of December.
The recent surge is quite a turn-around from the previous trend of decreasing numbers. Subscribers of mobile money stood at about 38.4 million in March last year, dropping to 38 million in June, and rising slightly to 38.1 million by September.
CA says in the report that growth of subscriptions in mobile money squares to a penetration rate of 75 per cent. Growth was recorded, though the percentage penetration rate dropped slightly following a revised denominator population on release of the 2024 Economic Survey.
The main factor behind the increase in mobile money subscription is the scrapping of a withdrawal code by Airtel. This code had required Airtel Money customers to withdraw cash within seven days of receipt or have the amounts reverted to the senders. With the scrapping of the restriction, there is now an easier flow of the user experience.
With the change that came into effect on 6th February 2024, customers can now be in a position to receive funds directly into their respective wallets from any network, not excluding M-Pesa. The move sets the scene for the implementation of the Central Bank of Kenya’s National Payments Strategy 2022-2025, aimed at improving mobile money interconnectivity across the different networks.
Not only has the scrapping of this restrictive code increased the number of Airtel Money users, but also, according to a CA report, it has spurthed the growth in the use of mobile money countrywide. During the reference period, mobile money subscriptions grew underlining positive reception from users.
In its 2024 Economic Survey, the Kenya National Bureau of Statistics reports that 600 000 mobile money subscribers were lost in the past year. This change changes the trend set up, which indicates the essence for regulatory and industry collaboration towards the growth of the sector.
The enhanced interoperability now allows users on rival platforms to send between Sh1 and Sh250,000 per transaction daily to Airtel Money accounts. This flexibility has likely helped in increasing the adoption of mobile money services. The government shelved plans to increase taxes on mobile money transfers as a way of raising funds to fund the budget that was expected to take care of a number of things including employment of JSS teachers on permanent and pensionable terms.