Mobile Money Cash Transactions Hit Kshs 6T

Mobile money cash transactions have jumped 36 percent to Sh6.2 trillion in the nine months to November.

Data from the Central bank of Kenya shows transactions at the agents rose from Sh4.6 trillion in a similar period a year earlier.

This further indicates their growing use during the pandemic.

Mobile Money Popularity

Kenyans have increased reliance on mobile money agents for transactions from an annual Sh2 trillion six years ago.

For four years between 2016 and 2019 Kenyans transacted Sh3 trillion on average as transactions grew modestly below 10 percent.

However, the increase has been pronounced since 2020 when transactions grew 16 percent following the outbreak of the Covid-19 pandemic.

It shifted more customer settlements to mobile, boosting agency businesses that support the sector.

CBK introduced reliefs on mobile phone payments that were in place from March 2020.

This allowed for free mobile money transactions of up to Sh1,000 and from banks to mobile wallets.

This was aimed at encouraging cashless payments on mobile phones as part of efforts to contain the spread of the coronavirus.

The growth also indicates the impact of eased restrictions with the reopening of learning institutions and resuming businesses activities, which push up the demand for goods and services.

Covid Pandemic Hits

The pandemic last year had slowed economic activities.

It led to layoffs and reduced incomes, resulting in declined spending and investment.

Growth slid to negative 0.3 percent in 2020 five percent in 2019 according to Business Daily.

This was the first annual GDP contraction since 1992 when the output slid 0.8 percent.

Recovery has, however, started with a GDP rebound of 10.1 percent in the second quarter and 9.9 percent in the third quarter of last year.

The CBK is expecting the economy to grow by 6.1 percent in 2021 and 5.6 percent this year.