The fintech sector in Kenya is among the fastest-growing in Africa. Not only is Kenya known for its innovation in fintech, but it is also known to be the most lucrative market for most fintech executives due to the attractive salaries they earn. According to a study by the Digital Frontiers Institute, Kenya’s fintech sector is leading followed closely by Nigeria, Tanzania, and South Africa.
Mobile money services lead in Kenya’s Fintech sector in terms of subscription and financial performance as it is the most common form of payment in the country. Banks may offer payment services on mobile applications and the internet but other non-bank institutions are known to take the lead.
Safaricom’s M-pesa dominates the mobile money market.
M-pesa revenue is about 12 times more than its closest competitor and holds about 60-65% market share. This is attributed to the fact that M-pesa has a wide customer base. Safaricom is the largest network in Kenya and it is also the pioneer of mobile payments thus had time to grow its business and brand. As for M-pesa competitors, their growth is mostly attributed to affordability and ability to meet the dynamic needs of consumers.
As of Q4 2018, M-Pesa accounted for 78.3% of the market’s total while on the other hand Airtel and Telkom accounted for below 0.1% of the value of mobile money transactions in the same period.
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