The value of mobile cash transfers grew 34 per cent in the three months to December compared to the same period in 2018.
Data by the Communications Authority (CA) shows mobile money transactions were valued at Sh2.83 trillion compared to Sh2.1 trillion the previous year.
This as more as more Kenyans opted to pay for goods and services provided by both the private sector and government through their e-wallets.
The value of e-commerce transactions stood at Sh1.58 trillion during the quarter under review with business-to-business transactions accounting for 54.52 per cent valued at Sh859.61 billion.
Between October-December, customers to businesses transactions were valued at Sh294.01 billion, business to customer (Sh377.41 billion) while customer to government transactions stood at Sh9.73 billion.
On the other hand, person to person cash transfers were valued at Sh684.51 billion, a 6.47 per cent decline from the Sh731.9 billion recorded over the same period last year.
During the quarter under review, customer deposits were valued at Sh606.96 billion.
Safaricom’s M-Pesa recorded the highest market share of 98.8 per cent, whereas T-Kash recorded the lowest market share of 0.07 percentage points.
More mobile cash transfers are expected as a number of banks and other institutions offering financial services have waived transaction fees to reduce the handling of hard cash amid the spread of coronavirus.
According to Kenya Bankers Association director for research and policy, the global coronavirus pandemic has showcased why the country needs to move towards becoming a cash-lite economy.
“The case for less use of physical cash is far more compelling with the global pandemic,” he told the Star. “We now need to leverage on strides we have made so far.”
The use of mobile money has over the years been fast-tracked by the use of online platforms, allowing customers to order for goods and services at the comfort of their homes.
A trend that is likely to increase significantly in the weeks ahead as more Kenyans are forced to stay at home to minimise the spread of coronavirus.
