Removing Airtele's unique codes significantly increases the count of mobile money subscribers in Kenya.
Kenya's Mobile Money Industry Experiences Growth and Change
In the bustling Kenyan mobile money landscape, M-Pesa continues to dominate with a staggering 96.5% market share in 2023. The industry, overseen by the Central Bank of Kenya (CBK), has seen significant growth, with the number of mobile money subscribers reaching 38.7 million, reflecting a penetration rate of 75%.
This growth can be attributed to several factors. The growth in active mobile (SIM) subscribers was fueled by customer win-back campaigns conducted during the period. Moreover, the removal of withdrawal codes for Airtel Money customers by Safaricom and Telkom Kenya has enhanced interoperability and improved customer convenience, contributing to the increase in mobile money subscribers.
The CBK's mandate ensures a seamless customer experience, allowing both on-network and off-network direct transactions. This policy, combined with collaborative efforts from industry players, has facilitated the removal of withdrawal codes, a move that has been credited with driving the growth in mobile money subscribers.
However, the industry has not been without its challenges. Kenya shed 600,000 mobile money subscribers during the full year to December 2023, according to the 2024 Economic Survey. This drop is due to a review of the denominator on population following the release of the survey.
Despite this setback, the country's mobile money market grossed KES 17.2 billion ($133.2 million) in 2023. The Communications Authority of Kenya (CA) has released a report showing a surge in mobile money subscribers in Kenya, with active mobile (SIM) subscribers increasing from 66.7 million in December 2023 to 68 million by March 2024. This growth represents an addition of 700,000 new subscribers to the mobile money ecosystem during the three months leading to March 2024.
The growth in mobile money subscribers from December 2023 to March 2024 is not reflected in the overall decline in subscribers from December 2023 to the end of 2023. This disparity could be a result of the seasonal nature of the industry or other factors yet to be fully understood.
Kenya's mobile money industry has experienced significant growth in recent years, largely supported by the government's efforts to drive financial inclusion. With continued collaboration and innovation, it is expected that the industry will continue to thrive, offering Kenyans a convenient and accessible means of financial transactions.
