This archive report was first published on 17 October 2019.
Mobile payments in Kenya have continued to grow, with Equitel, a mobile virtual network operator, recording a 16% increase in commerce transactions over the last year, according to the Communications Authority (CA).
As of June 2019, Equitel's mobile money commerce transactions reached 101 million, up from 87 million in the same period the previous year. The value of mobile commerce transactions also increased to Ksh378.9 billion, a 15% growth from Ksh328 billion processed in the same period in 2018.
The growth is attributed to the aggressive signing up of leading retailers and online merchants, as well as an increase in the number of Equity Agents. Currently, Equity Bank has 20,185 merchants and 38,200 agents countrywide, offering e-commerce services to both customers and merchants at no cost.
Equity Group Chief Executive Officer and Managing Director Dr. James Mwangi attributed the growth to the company's efforts to digitize retail commerce operations. 'Our effort to digitize retail commerce operations through enrolling retail shops to transact through EazzyPay has paid off. The number of EazzyPay transactions has grown, suggesting the size of transactions are increasing and the country is accepting the risk of digital money,' Dr. Mwangi said.
Equitel processed over 156 million transactions as of June 2019, valued at Kshs469.9 billion, compared to 140 million at the same period last year, valued at Ksh413.4 billion.
Equitel's person-to-person transfers grew by 8% to Kshs126.5 billion, accounting for 16% of the total Kshs770.9 billion transferred in June 2019. Total deposits stood at Kshs81 billion in the same period, accounting for 12% of the overall Kshs669.3 billion deposited across all mobile payment platforms.
Dr. Mwangi noted, 'Our customers are digitizing their money. Once the money is deposited on their mobile phones, they are not withdrawing but transacting with it on a digital platform, and that to us is the best change we are seeing in the overall market.'
According to the CA report, the number of active mobile money subscriptions in the country stood at 32.5 million as of June 2019, a 10% increase from 29.7 million in June 2018. The value of transactions increased by 11% to Kshs2.18 trillion from Kshs1.92 trillion.
Equitel's subscription base as of June 2019 was 1.88 million, accounting for 3.6% of the market share. Equitel, launched in July 2015, accounted for 22% or Kshs469.9 billion of the Kshs2.1 trillion transacted in mobile money as of June 2019.
