Mobile money accounts hit a new record of 70 million in May, according to new Central Bank of Kenya (CBK) data, underpinning the increased use of online transactions in payments.
The number surpasses mobile subscriptions at 64.96 million as at March 2022, highlighting more than one account registered to an individual.
The registered mobile wallets have grown from 67.77 million in the same period last year.
Cash handled at mobile money agents also hit a new record in May, edging close to the Sh700 billion mark, according to data by the CBK, amid increased usage of mobile money services.
The value of transactions at the agents rose to Sh692.6 billion in May compared to Sh536.7 billion in May 2021 while the value of the transactions in the five months to May increased by 16.1 percent to Sh3.2 trillion compared to Sh2.7 trillion in the same period last year.
The number of active agents under M-Pesa, Airtel Money and T-Kash mobile money services in May was 305,830.
The increased online transactions were accelerated during the Covid-19 period in 2020 under the government’s order to reduce the handling of physical cash, a move that led to high adoption of transfer of money between mobile wallets and bank accounts.
Mobile money platforms were, in the formative years, used primarily for person-to-person cash transfers but the growth has now extended to payment of services and goods, and payment of government services.
Data from the Communications Authority of Kenya (CA) show transfers between business to business accounts held the largest share in mobile money services with a value of Sh2.2 trillion in the three months to March.
Customer-to-business transfers were valued at Sh1.4 trillion, ahead of person-to-person transfers at Sh1.1 trillion.
The CBK’s data also shows the value of card payments through point-of-sale machines also increased by 32.2 percent to Sh95.7 billion over the five-month period compared to Sh72.4 billion in 2021.
The adoption has contributed to the expansion in the ICT sector growth by 8.8 percent in 2021 despite a slowed contribution to gross domestic product slowed down to 2.4 percent from 2.6 percent in 2020 on rebasing.
