This growth is expected to continue in the coming months following the Central Bank of Kenya’s (CBK) approval of higher transaction limits.
The CBK data shows that the number of mobile money accounts also increased in July to 77.21 million. This was supported by a rise in the number of active agents, which stood at 330,912.
The CBK’s decision to increase the daily mobile money transaction limit from Sh150,000 to Sh250,000 and the mobile money wallet size from Sh300,000 to Sh500,000 is expected to boost the growth of mobile money in Kenya.
The CBK said that the new limits will support customers, businesses, and institutions, including government agencies, to make and receive digital payments in larger amounts. This will increase the convenience of mobile money and deepen financial inclusion in the country.
The CBK has, however, acknowledged the risks that come with increasing mobile transactions and wallet limits, such as money laundering, financing of terrorism, and fraud. It has called on payment service providers (PSPs) to implement enhanced risk mitigation measures.
The CBK will closely monitor the implementation of the approved measures to assess their impact on the wider financial ecosystem.
Factors contributing to the growth of Mobile money in Kenya.
- The growth of mobile money in Kenya is driven by several factors, including the increasing use of smartphones, the growing popularity of online and digital payments, and the government’s push to digitize payments.
- Mobile money is a key enabler of financial inclusion in Kenya. It provides a convenient and affordable way for people to access financial services, even in remote areas.
- The CBK is committed to promoting the safe and efficient use of mobile money in Kenya. It has put in place a number of measures to mitigate the risks associated with mobile money, such as Know Your Customer (KYC) requirements and transaction monitoring.