Kenyans moved a record Sh8.69 trillion through mobile money agents in the year leading up to December 2024, underscoring the growing shift towards digital transactions and financial inclusion.
Data from the Central Bank of Kenya (CBK) indicates that mobile transactions surged by 9.3 per cent from Sh7.95 trillion recorded in the previous year. Although the regulator did not provide specific reasons for the increase, experts attribute it to the expanding network of money agents and ongoing financial inclusion efforts.
CBK figures show that the number of mobile money agents grew by 18.2 per cent, closing the year at 381,116, compared to 322,404 in 2023. This rise has facilitated wider access to digital financial services across the country, particularly in rural areas.
Analysts argue that the increasing number of agents reflects a broader trend of mobile money adoption in Kenya, as digital payments become a key part of daily transactions. Businesses, especially small and medium-sized enterprises, have increasingly embraced mobile payments due to their convenience, security, and efficiency.
As more people gain access to mobile financial services, the volume of money transacted has continued to rise, pushing Kenya further towards a cashless economy.
Despite overall growth, mobile money transactions fluctuated throughout the year. February recorded the highest transaction value at Sh790.8 billion, while September saw the lowest at Sh670.5 billion. These variations were driven by factors such as seasonal business trends, tax changes, and adjustments in mobile money fees.
The 2024 recovery marks a sharp contrast to 2023, when mobile money transactions recorded a sluggish 0.6 per cent growth—the lowest in four years. The slowdown was largely attributed to a 25 per cent tax hike on mobile money transactions, which made sending and receiving money more expensive.Money agents transactions by Kenyans hit Sh8.7 trillion in 2024 – CBK
As of September 2024, M-Pesa continued to dominate Kenya’s mobile money sector, controlling 92.3 per cent of the market, according to industry regulator data. Airtel Money followed with 7.6 per cent, showing a modest rise from 6.6 per cent in June 2024. Meanwhile, Telkom Kenya’s T-Kash struggled to gain traction, holding less than one per cent of the market.
M-Pesa’s dominance is largely attributed to its vast agent network, seamless integration with businesses, and extensive financial service offerings. While Airtel Money has experienced some growth, it still faces significant challenges in competing with Safaricom’s entrenched ecosystem.
The removal of the restrictive withdrawal code has helped Airtel Money expand its market share, making transactions more convenient for users.
With Kenya’s mobile money sector continuing to grow, analysts predict further adoption of digital financial services, shaping the future of payments and economic transactions in the country.
