In 2023, mobile money added $24 billion to Kenya’s GDP, representing an 8.6% increase compared to the year before. This impact is more than double the 2013 figure and higher than the Sub-Saharan African average.
According to the latest report by GSMA, “Mobile money’s contribution to Kenya’s economy in 2023 was more than double its impact in 2013 (3.9%). It was also significantly higher than the impact of mobile money in Sub-Saharan Africa (4.5%) in 2023.”
The 8.6% GDP increase attributed to mobile money is on par with the economic contributions of Kenya’s manufacturing and real estate industries. Furthermore, at an individual level, mobile money increased GDP per capita by $460 in 2023. This is nearly three times the amount seen in 2013.
This decade covered in the GSMA report represents a period of consistent growth in the country. Kenya saw a more than threefold increase in registered mobile money accounts, surging from 25 million to 77 million.
In terms of enhancing livelihoods, mobile money’s growth has emerged as a significant source of employment.
In the decade between 2013 and 2023, Kenya witnessed a significant expansion of its mobile money agent network, with numbers climbing from 110,000 to 320,000. Concurrently, cash-in and cash-out transactions grew by 1.5 times, totaling close to $1 billion in 2023.
Kenya’s mobile money market is dominated by telecommunication companies. The current major players are Airtel Money, T-Kash, Equitel, and M-Pesa. Airtel Money has, in the recent past, been experiencing some growth.
It grew its market share from 2.9% to 7.6% in the year to September 2024. A reduction in market share, from 97.0% to 92.3%, was observed for M-PESA over the same period.
The cost of transactions is a major concern. “Reducing transaction costs can increase trade, which can lead to a more efficient allocation of capital, thereby improving productivity and investment by enterprises,” reads part of the GSMA report.
