Data from Central bank of Kenya(CBK) has revealed a rise in mobile money transactions, with Kenyans transaction Ksh.14.3 billion every day in the months of December 2020.
In total, mobile money transactions and transfers amounted to Ksh5.21 trillion, a 20 percent increase from the Ksh4.34 trillion transacted in 2019.
“A significant increase of mobile money usage has been noted over the period the measures (Covid-19 containment measures) have been in place, demonstrating that they were timely and effective. For instance, the monthly volume of person-to-person transactions increased by 87 percent between February and October 2020,” said CBK in December.
During this period, the Kenyan government had raised the limit cap on mobile money transactions from Ksh.150,000 to ksh.300,000 per day.
The central bank of Kenya had also directed mobile money companies to allow free transfer on monies of value up to Ksh.1000.
Between March and December, mobile money agents handled cash worth Ksh4.49 trillion, more than the Ksh4.34 trillion handled in the full year of 2019.
The data from Safaricom shows that the cash handled by the agents maintained a steady month on month rise from Ksh357.37 billion in May to hit Ksh605.69 billion in December. This was the highest record for a month since Kenya started tracking mobile money transactions.
Despite the rise, mobile money operators recorded a dip in profits following the removal of transaction fees for amounts below Ksh1,000.
The free transfer on transactions of below Ksh.1000 ended on the last date of December 2020.
Daily Press is Kenya’s fastest rising online content platform with exclusive stories