Kenya's retail banks catch up on mobile money

Are Kenya’s banks catching up on mobile money? New figures indicate that Kenyans are spending less on mobile money, with the monthly figures spent on mobile money falling by almost 20 per cent in the 12 months to February 2025, according to central bank figures.

“The widening gap between usage and transaction value indicates a structural shift in how mobile money functions within the Kenyan economy,” writes TechCabal.

The figures suggest that the sustained drop in value of transactions point to a number of factors, including slowing household spending due to inflationary pressure, but also competition from fintechs and bank mobile apps.

“For higher-value transactions, such as rent payments, tuition fees, and business transfers, many Kenyans now prefer using bank apps or mobile banking platforms, reducing reliance on traditional mobile money.”

That will be music to the ears of many bankers. Safaricom continues to dominate mobile money, holding a 91 percent share of the market share in December 2024, with Airtel taking the rest of the business.