The value of funds transacted through mobile phones stood at Sh2.4 trillion in 2014 following increased uptake of the service by consumers and aggressive marketing by and providers.
According to the latest data released by the Central Bank of Kenya (CBK), transactions carried out through mobile phones rose by 24.7 per cent to Sh2.37 trillion in 2014, compared with Sh1.9 trillion that was transacted through the same channel in 2013.
Monthly transactions rose to their highest level in December last year to Sh225.5 billion, translating into a daily rate of Sh7.3 billion.
Analysts in the sector have attributed the growth to increased uptake of the service by merchants and individuals due to its convenience, cost-effectiveness and security as opposed to using cash or other means to make payments or transfer money.
Increased competition in the market as well as aggressive marketing of the service has seen it grow to historic levels, surpassing Kenya’s annual budget.
Mobile money transactions are expected to rise further following the rollout of cashless payments in the public transport sector.
Mobile money was introduced in Kenya in early 2007. A total of Sh8.4 trillion has since been transacted through the service. The service also boasts 123,703 mobile money transfer agents.
Currently, Safaricom commands the largest share of the mobile money market.
Other players are Orange, Airtel, MobiKash, Tangaza Pesa and Equity Bank.
(Source: The Nation)
