A total of Ksh.3.8 trillion was handled by mobile money agents from January up to July of this year in transactions, a huge increase when compared to the Ksh.2.6 trillion they handled in a similar period of 2020.
The growth has been possible in a pandemic period and the Central Bank of Kenya is crediting it to the easing-even though slow-of tight covid19 regulation. The move has consequently encouraged more business in the country, boosting personal earnings and the use of mobile money.
“The economy is expected to rebound in 2021, supported by the continued reopening of the services sectors including education, recovery in manufacturing, and stronger global demand,” Central Bank of Kenya.
At the back-drop of it all, the Central Bank had late last year brought to an end the zero-rating cash transfers of under KES 1000 for mobile money products. Customers have had to take care of their transaction costs since then, but did not negatively reflect on the volumes of transactions conducted.
In its July 2021 sitting, the CBK Monetary Policy Committee notes that mobile money agents by Safaricom, Telkom, and Airtel rose from 287,410 in January to a total of 303,718 in July.
The re-opening of schools in March this year has also been a significant contributor, with parents encouraged to use every means of cashless payments in a bid to curb Covid.
Pochi La Biashara, a product by Safaricom to merchants who may not have Pay Bill numbers, has also steadily gained traction in a period where till numbers for business owners have become a norm.
Incentives such as zero transaction costs on till numbers and a 5% commission on airtime value sold in Pochi La Biashara encouraged both customers and businesses to opt for mobile money cashless transactions.