Cash sent and received via mobile money platforms jumped by 10.25 percent to Sh8.6 trillion in the year that ended last month, amid removal of restrictions on moving money from M-Pesa to Airtel Money.
Data from the Central Bank of Kenya shows cash moved via money platforms jumped from Sh7.8 trillion in the year that ended June 2023.
The rise coincided with the scrapping of a code that forced customers on Airtel Money to withdraw cash within a week of receipt or see the money revert to the sender.
Subscribers on M-Pesa, Airtel Money, and other mobile money platforms sent and received the highest amount of cash in February this year at Sh790.8 billion while the lowest was in September last year at Sh660.8 billion.
Communications Authority of Kenya (CA)— the regulator of the telecommunications industry— had earlier said that removal of the code on Airtel Money users was critical in pushing the volumes of cash moved via mobile money.
“There was growth in mobile money following the removal of withdrawal codes for transactions sent from M-Pesa to Airtel Money making it possible to transfer funds directly between the two mobile wallets,” CA says in the latest review of the telecommunications sector.
Airtel removed the requirement for the code in February, allowing its subscribers to receive money from any registered mobile money platform and notably feeding off the dominant M-Pesa.
The rise also defied Airtel’s decision to increase charges for sending and receiving cash across other networks where subscribers pay Sh25 up from Sh22 to withdraw between Sh101 and Sh500.
Airtel said that it increased the charges following the introduction of the 15 percent excise tax on transaction fees charged on money transfer services by cellular phone providers.
M-Pesa is the dominant mobile money platform in the country, with well over 97 percent of the local market, with Airtel Money fighting for the remaining share with T-kash of Telkom Kenya and Equitel.
For example, M-Pesa is the single biggest revenue stream for Safaricom highlighting the impact of mobile money services to the telco.
In the year that ended in March, the Safaricom Group’s revenue from M-Pesa in all its markets grew 19.4 percent to Sh139.91 billion.
The number of mobile money accounts stood at 77.9 million in the year that ended last month compared to 76.99 million as of June last year, while the number of mobile money agents grew by 5,503 to hit 334,046.
The popularity of mobile money has remained on the rise over the years, driven by increased and better network coverage by telcos and also the ease at which subscribers can send and receive money.
