The number of mobile money subscribers in Kenya has witnessed a significant rebound in the first quarter of 2024, reversing a year-long trend of decline.
This positive shift, according to a report by the Communications Authority of Kenya (CA), is attributed to the removal of a restrictive code that previously limited functionality between Airtel Money and M-Pesa, the country's dominant mobile money platform.
Prior to February 2024, Airtel Money users receiving funds from M-Pesa had just seven days to withdraw the cash before it automatically reverted to the sender.
This limitation discouraged inter-network transfers, hindering overall mobile money adoption.
"The growth in mobile money subscribers is attributed to the removal of withdrawal codes for transactions sent from M-Pesa to Airtel Money, which means that funds can now be transferred directly into the Airtel Money account (wallet)," stated the CA's report.
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Data from the report indicates a net gain of 700,000 new mobile money subscribers in the first three months of 2024, bringing the total number to 38.7 million.
This figure, however, reflects a slight drop in penetration rate due to an updated population estimate in the recently released 2024 Economic Survey.
The positive trend comes after a year of decline, with the subscriber base dropping from a peak of 38.4 million in March 2023 to 38 million by December of the same year.
The removal of the restrictive code by Airtel, which came into effect on February 6, 2024, aligns with the Central Bank of Kenya's (CBK) National Payments Strategy 2022-2025.
This strategy advocates for seamless mobile money interoperability across different networks, promoting a more inclusive financial ecosystem.
With the revised system, users on any mobile money platform can now send funds directly to Airtel Money accounts, with transaction limits ranging from Sh1 to Sh250,000 per day.
This enhanced interoperability is expected to further drive mobile money adoption in Kenya.
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