Men are the Most Active Users of Mobile Money in Kenya – Report

Gender and age have proven to be meaningful factors in terms of whether Kenyans use mobile money and to what ends. On the whole, men remain the most active users.

According to The 2016 FinAccess Household Survey data, 76 percent of men (approximately 18.1 million men nationwide) claimed access to a mobile money account. Their overall percentage grew two-fold over the last seven years, from 2009 to 2016.

Like most subscribers, the most common use was for sending mobile money between friends and family (90 percent), followed by saving (61 percent). Men were also most likely to use mobile money for everyday economic opportunities and conveniences, with 10 percent to 15 percent of them using mobile money for managing business needs such as giving or receiving wages (13 percent), or sending or receiving business payments (11 percent).

Today, over 70 percent of Kenyans have registered a mobile money account. The large majority of them use it for sending and receiving remittances, while many others use it for personal and business needs such as borrowing money from friends or paying wages.

Much of why, or how often, Kenyans utilize mobile money varies across demographic categories and social and economic contexts, according to both gender and age.

According to a report by FSD dubbed, ‘The Gender and Age Dimensions of Mobile Money Adoption in Kenya’, men and women of different age levels use their phones for varying reasons.

Statistically, their levels of adoption and usage vary considerably too. Up until now, studies concerning mobile money and financial inclusion have focused largely on aggregate adoption rates and usage trends. Few have shed light on the ways in which women, men and young adults (men and women ages 18-25), use mobile money differently.

Women, on the other hand, showed comparatively lower adaption rates. As of 2016, 68 percent of surveyed women (approximately 16.1 million females nationwide) claimed access to mobile money accounts.

While women were nearly as likely to use mobile money to transfer sums between friends and family, they were half as likely to use it for managing business finances, whether in giving or receiving wages (7 percent) or in making or receiving business payments (6 percent). Yet, women did demonstrate certain counter trends. Specifically, they were more likely than men to use mobile money accounts on a consistent monthly basis – 43 percent compared to 34 percent.

In addition, women’s overall rate of mobile money adoption since 2007 tripled compared to men’s twofold increase over the same seven-year period, demonstrating a closing gap between gender groups. One demographic category that remains less studied is young adults.

While exhibiting adoption rates similar to women, young adults have proven to be on the whole more likely to experiment with new mobile money-related products. Young consumers are more likely to utilize mobile money bill pay options or cash collection services such as Lipa Na M-Pesa, where their adoption rates were as high as 25 percent.

Mobile money first emerged in Kenya in 2007. Safaricom, the country’s largest telecom operator, launched M-Pesa. It recruited 400 agents, tasked with registering M-Pesa accounts as well as handle deposits and withdrawals.

Agents were also facilitators of non-subscribers wishing to send or deposit money to account holders. By 2009, nearly 27.6 percent of Kenyan adults claimed access to a mobile money account; by 2013, the percentage increased to 62 percent.

Today, mobile money remains vastly popular, with more than 70 percent of the country’s adults claiming use. And while Safaricom was accompanied by competitors, including Airtel Money, Orange Money, and Yu Mobile, M-Pesa remains the most popular mobile money platform, controlling over 80 percent of the market share with approximately 150,000 licensed agents. (CAK 2018).