Mobile money transactions in Kenya grew by 32% in 2021, data from the Central Bank of Kenya(CBK) shows.
This growth in mobile money use is attributed to an increase in the use of cashless transactions by firms and households.
CBK data shows that Safaricom’s M-Pesa, Airtel Money and Telkom’s T-Kash agents handled KSh 6.8 trillion in the twelve months to December 2021, a 31.7 percent jump from KSh 5.2 trillion in 2020
The performance is happening as Kenya’s economy steadly recovers from disruption caused by the COVID-19 Pandemic.
While the mobile cash business has been booming, other fragile sectors are yet to fully recover, including activity at the Nairobi Securities Exchange(NSE) that has suffered from exits by foreign investors.
According to Capital Market Soundness Report Q4 2021, recovery momentum of Kenya’s capital markets was slightly interrupted in November 2021 upon announcement of the new omicron virus resulting in a reduction in a 13.66% reduction in foreign investor participation in the equities market from October’s 64.83% to November’s 51.16%.
Kenyans have increased the use of cashless payments because of the convenience and need to reduce phyical contacts and spread of Covid-19 spread.
Mobile money platforms were previously used for person-to-person cash transfers and has now transitioned as a critical payment channel for firms.
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