The Mobile Money Revolution in Kenya

Nearly everyone owns a mobile phone in Kenya. It all started like a joke, some years back when owning a phone was just the privilege of a few. The mobile industry has now taken Kenya by storm and so is the mobile money. The mobile money in Kenya, since its establishment in March 2007 is now a force to reckon with.

At the moment, many financial institutions as well as non-financial are busy brushing shoulders in a scramble to struck partnerships with the mobile money firms. This is because the mobile money has proved to be a harbor of profits and potentials that have never been witnessed before within the country’s financial sector.

There is now a fierce battle between the commercial banks in Kenya and the mobile money service providers. Commercials banks are seeking a share of the massive income that is generated by the mobile money. The mobile money sector is now proving to be the largest source of revenue after the banks.

Between January and June this year 0f 2015, the transactions through the mobile money services rose by 18 percent from 1.1 trillion shillings reported during a similar period in 2014 to 1.3 trillion shillings. This is according to the report by the Central Bank of Kenya.

According to the report, the number of mobile money agents grew from 120, 781 by the end of June 2014 to 131, 761 by the end of June this year of 2015. This indicates an increase outreach of the mobile money service.

The future of Kenya’s economic sector now lies in the mobile money service providers. Many people have embraced the service because of a number of reasons:

• The service is fast and timely. User of mobile money do their transactions instantly without having to go to the financial institutions to line up.
• The service is convenient. The mobile money service is not complicated. Users are able to conveniently use it to perform various financial tasks.
• The mobile sector has a range of products. Apart from helping in banking, users of mobile money can also use the service to make other payments such as paying of bills.
• Mobile money services are everywhere. Banks are not found all over but mobiles are. People are able to send and receive money easily.

However, there is dire need for more players to enter into the mobile money service provision in order to reduce the monopoly enjoyed by some big companies.