The Chairperson of the President’s Council of Economic Advisors, David Ndii, has dismissed concerns over the recent decline in M-PESA agent transactions.
In a statement dated Sunday, November 30, 2025, Ndii was responding to a Kenyan who claimed that the drop in M-PESA transactions from KSh 6.51 trillion in 2024 to KSh 5.17 trillion in the first nine months of 2025 was caused by higher taxes, stagnant wages, and inflation eroding disposable income.
The user argued that, with less cash available, many people were avoiding deposits and withdrawals and opting instead for direct bank-to-M-Pesa or peer-to-peer transfers.
Ndii Explains Why There Is a Drop in M-PESA Agent Transactions
Ndii dismissed this argument, saying the trend reflects a positive shift in Kenya’s digital finance landscape.
He explained that reduced cash handling at M-PESA outlets is consistent with the wider adoption of cashless payments.
Also Read: CBK Launches M-Pesa Payments for Treasury Bills and Bonds of Up to Ksh250,000
He added that the data signals accelerated digital financial inclusion, not a decline in mobile money usage.
“You’re contradicting yourself, trying to fit a negative narrative not supported by the data. Less cash, more digital transactions, is in keeping with the trend toward a cashless economy. The correct reading is accelerated digital financial inclusion,” said Ndii.
Kenyans Respond to Ndii’s Argument
Another social media user, Awakened Ndichu, echoed Ndii’s sentiments, saying the decline in M-PESA agent activity is a natural outcome of changing consumer habits.
He noted that more Kenyans now settle daily expenses through digital options such as Pochi la Biashara, reducing the need for withdrawals or face-to-face agent services.
According to him, with nearly 80 percent of commuters already paying fares digitally, and withdrawal charges remaining high, many users are intentionally shifting toward fully digital transactions.
“David Ndii’s statement is correct. There is a diminishing need for agent services such as withdrawals as more people use digital transactions, not cash, to settle most of their needs. About 80% of commuters pay fare via Pochi. Withdrawals are punitive, so folks are avoiding them,” said Ndichu.
Also Read: Safaricom to Roll Out New M-PESA Features After Fintech 2.0 Upgrade
Another Kenyan, identified as Mwaniki Mwangi, also weighed in on the conversation, suggesting that the drop in M-PESA agent transactions could simply reflect changing customer behavior.
“If it’s purely a question of withdrawals, it could be changing customer behaviour. Nowadays, you hardly need to withdraw cash. What for, when there’s Lipa na M-PESA? Personally, I can go for months without handling cash,” said Mwaniki.
However, others disagreed with Ndii’s assessment. Murithi Magari argued that increased digital transactions do not automatically translate to greater liquidity for ordinary citizens.
“Do you live in an alternative reality, chief? More digital transactions don’t necessarily mean more cash. Digital transactions could have increased in only certain cadres. A drop in M-PESA transactions would be worrying because that is where the common mwananchi is,” Magari argued.
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