Kenya’s mobile money landscape is undergoing a notable transformation as per the latest data from the Communications Authority of Kenya (CA) for the first three months of 2025.
- •Safaricom’s M-Pesa market share in mobile money subscriptions declined to 90.8% in Q1 2025, continuing a six-quarter downtrend.
- •In contrast, Airtel Money has steadily gained ground, capturing 9.1% of the market—its highest ever.
- •From December 2022, when M-Pesa controlled 96.8% of the market while Airtel Money held just 3.1%, the former has shed six percentage points while the latter has tripled its share.
Market Share Trends Since 2022
What’s Driving the Change?
Several factors are fueling Airtel Money’s rise:
- •Pricing Advantage: Airtel Money charges less in transaction fees than M-Pesa. For example, sending KSh 1,000 across networks costs KSh 11 on Airtel versus KSh 13 on M-Pesa.
- •Customer Incentives: Airtel has introduced fee refunds and cashback offers like the “Rudishiwa” campaign to lure customers.
- •Agent Network Growth: Airtel has aggressively expanded its agent footprint through partnerships with Naivas and dedicated Airtel Money outlets. Year-on-year, Airtel’s agent network has grown by nearly 78%, reducing M-Pesa’s long-standing distribution advantage.
- •Interoperability Gains: The rollout of mobile money wallet interoperability by the CBK has made it easier for customers to switch and transact across platforms, weakening M-Pesa’s network effects.
In May 2025, Safaricom announced a US$309 million investment to modernize M-Pesa into a cloud-native, scalable platform. The goal is to reassert its dominance by enhancing speed, reliability, and innovation.
While M-Pesa still holds a commanding lead, the market dynamics suggest it can no longer rely on inertia. Airtel Money’s steady ascent signals growing competition in Kenya’s fintech ecosystem, driven by pricing, innovation, and better distribution. With agent-level interoperability expected soon, the fight for market share is only set to intensify.
The question now is whether Airtel Money can sustain this momentum—and whether M-Pesa can adapt fast enough to hold its ground.
