The Kenya National Bureau of Statistics (KNBS) has reported a remarkable surge in mobile money transactions, which hit Sh6.5 trillion in the first nine months of 2024.

This represents a 13.2 per cent increase compared to Sh5.8 trillion during the same period last year, reversing a 2.7 per cent decline recorded in 2023.

A significant driver of this growth was Airtel Kenya's decision in February to remove restrictive withdrawal codes, allowing funds sent from M-Pesa to be deposited directly into Airtel Money accounts without requiring withdrawal within a week.

Airtel earlier explained, "This development effected on February 6, 2024, comes in response to the Central Bank of Kenya (CBK) and industry players' collaborative efforts to ensure seamless mobile money interoperability as outlined in the CBK National Payments Strategy 2022-2025."

The data further reveals that February recorded the highest monthly transaction value at Sh790.8 billion, while September registered the lowest at Sh670.52 billion.

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Additionally, mobile money accounts grew by 3.4 per cent, with 2.6 million new subscriptions pushing the total to 79.4 million.

Active mobile money agents also increased significantly, rising by 14.4 per cent to 367,551.

The Communications Authority of Kenya (CA) acknowledged the impact of Airtel's policy revision, stating, "The removal of the withdrawal codes for transactions sent from M-Pesa to Airtel Money enabling funds to be transferred directly into the Airtel Money account could have enhanced the uptake for mobile money services."

Despite Airtel's progress, M-Pesa retained its dominance in the market with a 93.4 per cent share as of June 2024, compared to Airtel Money's 6.6 per cent.

Kenya's mobile money ecosystem has continued to thrive, bolstered by improved network coverage, user convenience, and regulatory efforts to reduce transaction costs.

The CBK's advocacy for interoperability and lower fees has further enhanced mobile money's appeal, cementing its role as a cornerstone of the country’s financial system.

This sustained growth highlights mobile money's critical contribution to financial inclusion and economic stability, reaffirming its importance in Kenya's economic landscape.