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More Kenyans opt for mobile money transaction as branch transactions thin

COVID-19: More Kenyans opt for Mobile money transaction as branch transactions thin

In the wake of coronavirus pandemic, more Kenyans have opted to go digital as data reveals that 61 percent of mobile money transactions are being conducted over mobile phones against branch visits.

The data, which was revealed by the Central Bank of Kenya’s (CBK) Governor Dr Patrick Njoroge , indicated that before the pandemic, 88 percent of transactions by number which is, 50 percent by value, were being conducted outside branches.

“Before, 44% of transactions were being transacted on mobile phones. Now, 61% are on mobile.” SAID Governor Njoroge during a Monetary Policy Committee (MPC) meeting on Friday.

This is a clear indication that there’s a significant preference by Kenyans for mobile transactions on banking utilities as branch transactions thin.

The new changes have been driven by CBK’s move to waive person-to-person mobile money transaction and bank transactions, to mitigate the coronavirus pandemic.

On March 16, CBK announced a set of measures to facilitate increased use of mobile money transactions instead of cash.

The cash limits between Ksh100 to Ksh500 and Ksh501 to Ksh1000 recorded increased transaction volumes and values as the waiver of fees for up to Ksh1000 encouraged more mobile money transactions, according to CBK.

The regulator also allowed telecommunication companies to extend the tariff threshold on mobile money transactions from an upper limit of Ksh70000 to Ksh150000 and lift the mobile money wallet limit to Ksh300000.

In early January, the World Bank ranked Kenya as a country with the highest user of Mobile Money Transactions in Sub-Saharan Africa.

The international lender said Kenya emerged top with a 68 percent score beating Sudan percent to second place while Gabon was third with 50 percent.

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