Skip to main content
July 17, 2018

Kenyans transact Sh1.7tn in 90 days as mobile cash takes root

An employee assists a customer to set-up M-Pesa money transfer servive on his handset inside a mobile phone care centre operated by Kenyan's telecom operator Safaricom; in the central business district of Kenya's capital Nairobi, May 11, 2016. REUTERS
An employee assists a customer to set-up M-Pesa money transfer servive on his handset inside a mobile phone care centre operated by Kenyan's telecom operator Safaricom; in the central business district of Kenya's capital Nairobi, May 11, 2016. REUTERS

Kenyans transacted Sh1.76 trillion through mobile phones in 2017/2018 second quarter ending December 2017, new data from Communication Authority shows.

The sum, which was moved in 607.41 million transactions is a 6.3 per cent increase from the first quarter ending September 2017 which recorded Sh1.65 trillion.

Also, the total number of active mobile money transfer subscriptions rose to 30 million from 28.19 million in the first quarter while that of total mobile money agents stood at 198,234 .

The data shows that of the total value transacted, 66.17 per cent was through 308.6 million mobile commerce transactions. The remaining Sh596.4 million were person-to-person transfers.

CARD PAYMENTS

This means that payments for goods and services through their mobile devices is increasingly becoming popular compared to card payments.

Latest Central Bank month on month statistics on national payments within the period under review, shows that payments for goods and services using cards was Sh353.9 million as at December 2017. The card payments were in 54.82 million transactions.

Mobile service provider Safaricom through M-Pesa registered the largest transactions at Sh1.41 trillion. Equitel came second at Sh350.54 billion followed by Airtel Money which registered Sh1.58 billion.

ONLINE PAYMENTS

In the wake of mobile cross -platform cash transfers that kicked off early this week, it is expected that mobile commerce transactions will increase further in the coming years. This is also likely to be boosted by Safaricom’s entry into the global digital economy through an M-Pesa-Paypal partnership.

The partnership means that M-Pesa account holders will be able to purchase and pay for goods and services from international eCommerce platforms and other online businesses. Other players were Mobi-Kash and Mobi-Pay who transacted Sh127 million and Sh1.46 million respectively.

Safaricom is still the top market share holder in the telecommunication sector holding 69.1 per cent of the market.

However, this is a a decline of 2.8 per cent compared to 71.9 per cent recorded during the previous quarter. Airtel’s market share rose to 17.2 per cent from 14.9 per cent recorded as at September 2017 while Telkom Kenya Limited gained 0.6 percentage points.

STAR COMMUNITY POLICY AND PARTICIPATION GUIDLINES

Poll of the day