This archive report was first published on 30 June 2019.
According to the Central Bank of Kenya (CBK), mobile payments hit nearly Sh1.79 trillion in the review period from Sh1.60 trillion a year ago.
This represents a daily average of nearly Sh11.85 billion in the period, an 11.58 percent growth over the Sh10.62 billion posted in a similar period in 2018.
Major sectors of the economy, including financial services, retail and wholesale trade, agriculture, and health, have integrated mobile platforms such as M-Pesa into their payment systems due to the convenience and speed they offer.
Unlike during the formative years when mobile money platforms were largely used for person-to-person (P2P) cash transfers, they are now increasingly being used to initiate and cut business deals, such as purchasing goods and services, as well as processing instant short-term loans.
Online shopping and the increased uptake of instant low-value unsecured mobile loans have driven the growth in e-commerce deals.
A survey by Consumer Insight Africa found that mobile money usage among Kenyans is growing, but cash remains dominant. The survey, which involved 3,703 persons through face-to-face interviews in 16 counties, showed that 14 percent of Kenyans prefer to use mobile money channels, nearly double from seven percent in 2017.
‘In commercial transactions, cash-free options in the Kenyan market abound. However, for the majority of Kenyans, cash is still a mighty long way from losing its currency,’ said Ruth Ruigu, research director at Consumer Insight.
