Mobile money agents ‘making it big’ in Kenya’s rural areas
Wednesday, May 27, 2015
Profitability in the mobile money agent business has increased by 10 percent in 2014 compared to 2013 according to a new report by Helix Institute of Digital Finance.
The research indicates that non-Nairobi urban areas, profitability has increased by 26 percent while in rural areas profits for the agents have gone up by 45 percent.
However, according to the report, profits in Nairobi have decreased by 20 percent in the period under review attributable to competition from the new agents setting up business in the capital.
Increasing in profitability is attributable to a decrease in operating costs that have dropped by 37 percent in the last year as agents diversify their sources of income.
“Many agent enterprises have now diversified their businesses like putting up retail stores, chemists on their enterprises this has led to an increase of non dedicated agents that have gone up to 64 percent of agents,” said Helix Institute Head Kimathi Githachuri.
Eleven percent of agents are not profitable. This is an improvement compared to 17 percent in 2013.
- mobile finance