Airtel Kenya’s mobile money service, Airtel Money, significantly increased its market share from 2.9% to 7.6% by September 2024, according to data from the Communications Authority of Kenya (CA). This growth was driven by free Airtel-to-Airtel transfers, lower fees for sending money across networks compared to Safaricom’s M-PESA, and cheaper withdrawal charges.
During the same period, M-PESA’s market share dropped from 97.0% to 92.3%, down from its earlier dominance of 98%. With over 40 million mobile money users in Kenya, affordability has become a critical factor influencing user preferences. Mobile money subscriptions rose from 39.8 million to 40.6 million, reaching a penetration rate of 78.9%.
Airtel Money’s strategy included eliminating charges for Airtel-to-Airtel transfers in 2020. For instance, sending KES 1,000 ($7.7) to other networks costs KES 11 on Airtel Money compared to M-PESA’s KES 13 ($0.093), while withdrawing the same amount costs KES 29 ($0.22), two shillings less than M-PESA. Additionally, Airtel Money addressed concerns about its limited agent network by partnering with Naivas supermarkets to expand its access points.
The Central Bank of Kenya (CBK) has advocated for full mobile money interoperability, allowing seamless transactions across providers. While customers can send money between networks and make interoperable payments, agent interoperability remains unrealized, maintaining M-PESA’s dominance. The mobile money agency network grew to over 365,000 agents by September 2024, up from 347,700.
Airtel Money also benefited from CBK’s decision to raise the daily transaction limit from KES 300,000 ($2,322) to KES 500,000 ($3,870) in 2024, targeting high-value customers and businesses. Customers can now keep funds received from other wallets for over a week, eliminating the previous requirement to withdraw or return the money.
Source: TechCabal
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