A recent report from the Communications Authority of Kenya (CA) has highlighted a significant rise in mobile money subscribers, reaching a total of 38.7 million users. This translates to a remarkable penetration rate of 75%. The third-quarter sector statistics report for the financial year 2023/2024 attributes this growth to a key policy change implemented by Airtel earlier this year.
Effective February 6, 2024, Airtel removed the withdrawal codes that previously mandated Airtel Money customers to withdraw cash within seven days of receiving it from M-Pesa. Under the old system, failure to withdraw the money within the stipulated time resulted in the funds being returned to the sender. This policy change, made in response to a collaborative effort between the Central Bank of Kenya (CBK) and industry players, aimed to enhance mobile money interoperability.
In a statement, Airtel explained, “This development comes in response to the Central Bank of Kenya (CBK) and industry players’ collaborative efforts to ensure seamless mobile money interoperability as outlined in the CBK National Payment Strategy 2022-2025.”
The CBK’s National Payment Strategy, launched in 2022, has been a driving force behind the push for improved customer experiences in the mobile money sector. The strategy mandates all mobile money operators to facilitate seamless transactions for users, whether they are conducting on-network or off-network transactions. This has paved the way for more inclusive financial services, promoting a more interconnected mobile money ecosystem.
The removal of the withdrawal codes has eliminated a significant barrier for Airtel Money users, allowing them greater flexibility and convenience. This move not only aligns with the CBK’s strategic goals but also enhances the overall customer experience, contributing to the notable increase in mobile money subscribers.
As mobile money continues to play a critical role in Kenya’s financial landscape, the recent surge in subscribers is a positive indicator of the sector’s growth and the successful implementation of policies aimed at fostering interoperability and inclusivity. The continued collaboration between regulatory bodies and industry players will be crucial in sustaining this momentum and ensuring that the benefits of mobile money are accessible to all Kenyans.
