2017 not rosy for mobile cash in Kenya

Wednesday, February 21, 2018

Last year was not so rosy for mobile money platforms. The growth of mobile money payments declined considerably, raising questions about the health of the economy.

Latest Central Bank of Kenya data shows that even as mobile providers rushed to launch new mobile money products, growth of mobile payments slowed from  19 per cent in 2016 to 8 per cent in 2017.

In 2015, Kenyans moved Sh2.81  trillion on mobile phone, in 2016 Sh3.35 trillion  while last year, the figure stood at Sh3.63 trillion.

Stakeholders have pegged the slow down on a prolonged electioneering period that led to a general decline in the economy, forcing many businesses to adopt a wait-and-see attitude towards expansions, growth and investments.

“Months of political uncertainty affected economic activity. Many sectors did less business than usual which translated into decelerated growth in payment channels in general,” said Mr Stephen Nduati, former head of national payment systems at the CBK, who now works as an independent consultant on mobile money in Kenya.

Photo courtesy of Simon Berry.

Source: Daily Nation (link opens in a new window)

digital payments, fintech, public policy