Competition takes toll on mobile money agents’ profits
Wednesday, June 18, 2014
NAIROBI, KENYA: The huge number of mobile money agents may have played a significant role in growing the mobile money in Kenya but the sheer numbers are also the reason the local agents are making less than their counterparts in the East Africa region. A new report shows mobile money agents in Kenya make a monthly median profit of ShSh6,000 ($70), which is Sh2,000 less than what their Ugandan counterparts make. This is despite the mobile money industry in Kenya being more mature compared to Uganda and the larger East Africa where the amounts moved through mobile money are still low compared to Kenya. Mobile money users total 27 million in Kenya compared to Uganda, which had 12 million mobile money users by the end of last year, while there were 10 million in Tanzania. “The report finds that across East Africa, Kenyan agents generate the highest number of transactions per agent, but the lowest amount of profits in the region.