The Kenya National Bureau of Statistics (KNBS) reported a significant rise in mobile money transactions during the third quarter of 2018, with total value reaching Sh1.6 trillion—more than double the Sh714.3 billion recorded in 2017. This growth followed the implementation of a 20% excise duty on mobile money transfers under the 2018 Finance Bill, which increased regulatory fees from 10% to 12% in the 2018/19 fiscal year.
The bureau attributed the surge to expanded telecommunications activities, including voice traffic, mobile SMS, data services, and mobile money transfers. However, sector growth slowed to 9.1% in 2018, down from 10.7% in the third quarter of 2017. Mobile call traffic also rose to 18.7 billion minutes in 2018, up from 11.1 billion minutes in 2017, driven by cheaper call rates and promotional discounts.
Central Bank of Kenya data showed mobile money agents increased to 203,359 in Q3 2018, compared to 167,775 in the same period in 2017. The total value of mobile money transactions rose to Sh327.66 billion in 2018, up from Sh300.92 billion in 2017.
