A new report released by the Communications Authority of Kenya (CA) reveals a significant surge in the number of mobile money subscribers in the country. According to the report, the number of subscribers on mobile money platforms has grown to 38.7 million, achieving a penetration rate of 75%.
The third-quarter sector statistics report for the financial year 2023/2024 attributes this growth to the removal of withdrawal codes that previously required Airtel Money customers to withdraw cash within seven days of receiving it from M-Pesa, or else the money would be returned to the sender.
Airtel explained the removal of these withdrawal codes, stating, “This development, effective February 6, 2024, comes in response to the Central Bank of Kenya (CBK) and industry players’ collaborative efforts to ensure seamless mobile money interoperability as outlined in the CBK National Payment Strategy 2022-2025.”
The National Payment Strategy mandates all mobile money operators to ensure a seamless customer experience, allowing direct on-network and off-network transactions. Under the new policy by the CA, subscribers can now transfer funds directly from M-Pesa to Airtel Money without needing withdrawal codes.
The report revealed that in the three months leading to March 2024, 700,000 new subscribers joined the mobile money ecosystem. This increase brought the total number of customers to 38.7 million, up from 38 million recorded in December 2023.
The CA’s latest report noted that although there was growth in subscriptions, the penetration rate dropped slightly due to a review of population figures following the release of the 2024 Economic Survey. The survey indicated a loss of 600,000 mobile money subscribers during the full year to December 2023.
In addition to the rise in mobile money subscribers, active mobile (SIM) subscribers increased from 66.7 million in December 2023 to 68 million by March 2024, representing a penetration rate of 132.1%. This growth was fueled by customer win-back campaigns conducted during the period.
Kenya has seen significant growth in mobile money uptake in recent years, driven largely by government efforts to promote financial inclusion. In 2023, the country’s mobile money market grossed KES 17.2 billion ($133.2 million), with M-Pesa leading the industry with a dominant 96.5% market share.
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