This archive report was first published on 21 July 2021.
As the COVID-19 pandemic continues to shape consumer behavior, mobile money transactions in Kenya have experienced a remarkable surge. According to data from the Central Bank of Kenya (CBK), the value of mobile money transactions in the first five months of 2021 jumped to KSh2.7 trillion, a 56% increase from KSh1.8 trillion in the same period last year.
Published on July 21, 2021, the data also shows that the number of mobile transactions increased to 874.5 million from 710.3 million in the period under review. In May 2021, mobile-based payments reached KSh537 billion, a significant increase from KSh357 billion in May 2020.
Kenyan consumers have been transacting an average of KSh18 billion on their mobile phones daily between January and May this year, up from KSh12 billion average daily transactions in the corresponding period in 2020. This growth in mobile money transactions can be attributed to the shift towards digital payments, driven by the need to limit the spread of the virus through cash payments.
The rise of e-commerce has also contributed to the surge in mobile money transactions. Many businesses, including supermarkets, restaurants, and clothes shops, have moved their operations online after the introduction of COVID-19 restrictions last year. According to Safaricom, one of Kenya's largest mobile money service providers, one-month active Lipa na M-PESA tills grew by almost 75% YoY to around 302,000 in the last financial year.
The number of active mobile money agents in the country increased to 298,883 at the end of May, from 243,118 a year ago. Safaricom's M-PESA agents in Kenya reached 247,900 at the end of the financial year on 31st March 2021, up from 173,235 a year earlier.
According to Safaricom, mobile-based payments are preferable to cash payments as they significantly reduce the potential risks of street robbery, burglary, and petty corruption.
