The mobile money service M-PESA, operated by Safaricom, has experienced a decline for the fifth consecutive quarter due to factors such as increased interoperability and competitive promotions from Airtel Money. M-PESA’s market share dropped to 91% in Q4 2024, while Airtel Money saw growth from 7.6% to 8.9% during the same period, according to data from the Communication Authority of Kenya.
The competition in Kenya’s mobile money sector is evolving, with easier customer switching enabled by increased interoperability since 2022. Airtel Money’s aggressive promotions, lower fees, and expanded agent networks are attracting more customers, as evidenced by the growth in Airtel Money accounts.
Airtel Money’s affordability for transactions, with lower fees compared to M-PESA, is a significant factor in its market penetration. Additionally, Airtel has strengthened its agent network by partnering with supermarket chains like Naivas, although M-PESA still maintains an edge with over 160,000 agents nationwide.
Despite the Central Bank of Kenya’s commitment to implementing agent interoperability, the plan remains unfulfilled as of now. M-PESA, with over 34 million customers, continues to be the dominant mobile payments platform in Kenya, processing billions of transactions. Airtel Money has an estimated eight million registered users.
The introduction of a new Fast Payment System (FPS) by the Central Bank of Kenya, allowing instant transactions across all financial institutions, could pose a further challenge to M-PESA’s market dominance.