Business
Kenya: Mobile Money transactions in hit $13 billion in 6 months
Kenyans transacted US$13 billion on mobile money in the first 6 months of this year as new players joined the sector according to the latest Central Bank of Kenya numbers.
This is a new high in mobile money use, with the figure surpassing that of a similar period last year by US$3 billion.
The growth cements the East African nation’s position as the top user of mobile money across the world. Three new players have joined the sector in the past months.
Kenya’s telecommunications regulator – the Communications Authority of Kenya, in April licensed mobile virtual network operators Zioncell, Tangaza Pesa and Finserve to enhance competition in the industry that has been dominated by the M-PESA platform, which is operated by the country’s largest cellular carrier, Safaricom.
The new firms are expected not only to stiffen competition, but also to deepen the use of mobile money as their transactions are across networks.
The largest mobile money transactions in the period from January to June were recorded in May, at US$ 2.3 billion, according to the data from the Central Bank of Kenya.
It is the first time in the history of mobile money in the East African nation that transactions hit the mark. The boom can be attributed to the start of the new school term, during the month after the holidays, as many Kenyan parents use mobile money to pay school fees.
Most of the mobile money transactions happened in the second quarter of this year. Between January and March, Kenyans transacted US$6.3 billion, while in April to June, the transactions increased to US$6.7 billion.
Kenya’s unequaled mobile money use grew to historic level last year as the country transacted US$22.4 billion – which translates to US$ 61 million a day or US$2.6 million an hour.
The transactions were an increase of US$4.4 billion from 2012’s, which stood at US$18 billion.
With the coming in of new players and mobile money finding new uses like paying rent and airfare, Kenyans are set to make a new record this year. Mobile money subscribers, similarly, increased to 26 million at the end of June, up from 25.5 million in January.
The sector continued to create jobs for thousands of people in the country and the East African region. Over 6,600 agents have joined the sector since January, with many others expected with the licensing of the 3 new players. In January, the number of mobile money agents stood at 114,107. This rose to 116,196 in March before then swelled to 120,781 in June.
“There is excitement about competition but you have to view it in the context that the market is still 98 percent cash. There is room for everyone,” said Safaricom CEO Bob Collymore after the licensing of competitors.