Grace Ashiru
According to new data from the Central Bank of Kenya (CBK), the value of mobile money transactions in Kenya declined significantly by 19.6% from KES 790.8 billion ($6.13 billion) to KES 636.2 billion ($4.93 billion) over the 12 months leading to February 2025, marking the lowest monthly figure in over a year.
Despite the decline, the sector’s reach has continued to grow. CBK data reveals that the number of active mobile money agents increased from 320,182 to 394,853, while subscriptions rose from 77.3 million to 84.6 million during the same period.
The growing disparity between usage and transaction value suggests a structural shift in the role of mobile money in Kenya’s economy. Once hailed for boosting financial inclusion since the launch of M-PESA in 2007, mobile money is now facing challenges from slowing household spending, increased competition from banks and fintechs, and evolving consumer behaviors.
The rising number of agents and subscriptions indicates greater access to financial services, but the continued decline in transaction value points to deeper challenges. Core inflation, excluding volatile food and energy prices, increased to 2.2% in March 2025 from 2.0% the previous month. Growing living costs have strained household budgets, causing many to cut back on non-essential mobile money transactions.While more Kenyans are opening mobile money accounts, many are now transacting smaller amounts or using their wallets less often. The growth in account numbers no longer leads to increased transaction volumes, highlighting the pressure on household budgets and changing patterns in how money is moved.
The agent network has grown, particularly in smaller towns, but this has led to reduced earnings per outlet, as transaction volumes are divided among more agents. However, the broader expansion has not countered the overall trend, with total transaction values continuing to decline rather than increase.
For higher-value transactions like rent payments, tuition fees, and business transfers, many Kenyans now prefer using bank apps or mobile banking platforms, decreasing their reliance on traditional mobile money.
Despite the shift, Safaricom’s M-PESA continues to dominate, holding a 91% share of the mobile money market as of December 2024, according to the Communications Authority of Kenya (CA). Airtel Money follows with an 8.9% share.
