This archive report was first published on 31 August 2019.
Mobile money services have revolutionized the way we make transactions in Kenya, but the convenience comes at a cost. According to the Communications Authority of Kenya (CA), the demand for mobile money services grew significantly in the last quarter of the 2018/19 financial year.
During this period, active mobile money transfer agents stood at 223,084, and 32.0 million subscriptions were recorded. A staggering Ksh 2.122 trillion was handled in 784.4 million transactions, with consumers spending Ksh 1.84 trillion to purchase goods and services.
One of the key drivers of Safaricom's profits is its mobile money arm, M-Pesa. While M-Pesa users enjoy the convenience of a mobile bank, the service comes with a cost. In fact, the CA statistics reveal that Ksh 737 billion were person-to-person transfers, which come with a fee.
So, how much do we really pay for the convenience of mobile money? According to Safaricom's current transaction costs, sending amounts ranging from Ksh 101 to Ksh 500 costs between Ksh 11 and Ksh 27. For larger transactions, the cost can be as high as Ksh 105.
Assuming you send Ksh 20,000 in different tranches every month, the total cost can add up to Ksh 652. This may not seem like a lot, but imagine saving this amount every month. In a year, you would have saved Ksh 7,824, and over 10 years, the total would be a staggering Ksh 78,240.
It's time to evaluate our mobile money spending habits and consider cutting down on unnecessary fees. By doing so, we can create personal savings that can be a lifesaver during financial dry spells. So, the next time you use mobile money, remember that the convenience comes at a cost, and it's up to us to make the most of it.
