Mobile Money Transfer Hit Sh14.93 Million Per Minute, a Cash-Lite Economy Indication

Communication Authority data has indicated that Kenya moving towards being a cash-lite economy as the mobile money transfer in the country hit an average of Sh14.93 million per minute in 2018.

According to the report, Sh21.5 billion was either being deposited, withdrawn or used in every hour during that period. Mobile withdrawals, deposits, and mobile commerce recorded a total of Sh7.85 trillion worth of transactions, a 35.25 percent increase in comparison to 2017 when Sh5.8 trillion was transacted. The current figures are 91.39 percent of the value of Kenya’s GDP at Sh8.59 trillion.

In September last year, the government slapped a 20 percent excise duty on fees charged for money transfer services by banks, money transfer agencies and another financial service provider

This was after the fees were raised from 10 to 12 percent by the National Treasury in the financial year 2018-2019.

However, the increase had less effect as transaction value for the very first time hit Sh2.02 trillion over the June-September period.

The sector grew slower during the period, shrinking 1.6 percent to post a 9.1 percent growth over the three months, as compared to 10.7 percent in the third quarter of 2017.

In a recent data by Communication Authority, a sharp increase of mobile transfers was recorded between October and December where Sh337 billion was transferred raising the amount to Sh2.1 trillion, a clear indication of growth of trust in customers towards mobile wallet.

“In the quarter under review, there were 31.6 million and 223,931 total active mobile money subscriptions and agents respectively,” the report stated.

Person-to-person transfers were valued at Sh731.9 billion while 85.71 percent of the transactions recorded were for goods and services through mobile devices.

Equitel Money, which came in second, accounted for Sh572.24 billion of the total transaction values.

At least Sh3.15 billion was transacted via Airtel Money 1.37 billion while Telkom’s T-Kash managed a mere sh190.35 million.

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