A recent survey conducted by the Central Bank of Kenya (CBK) titled the 2024 FinAccess Survey has revealed that mobile money has become the backbone of financial access and transactions across the country.
According to the report, the usage and quality of financial services and products continue to deepen, on account of increased adoption of technology and innovations, use of a portfolio of products and services, government policies, and private sector strategies.
At the center of this transformation is mobile money, which the report calls the “equalizer” in access to financial services across various demographics.
Mobile money refers to financial transactions conducted via mobile phones, including transfers, payments, and savings. They include M-Pesa, Airtel money and T-Kash.
The Survey highlights shifting financial preferences in Kenya, with mobile money usage rising to 82.3 per cent, driven by expanded services, improved infrastructure, and greater adoption of government services and e-commerce
Financial services usage continues to grow in rural and urban areas, driven by mobile money, which has narrowed the rural-urban divide.
Mobile Money Usage in Kenya Hits 82% in 2024, Outpacing Banks
Mobile money remains dominant, used by 77.0 percent of rural and 89.7 percent of urban residents.
The financial provider has proven particularly valuable in bridging the rural-urban divide, offering services even where banks don’t operate.
In 2024, the daily usage of mobile money increased from 23.6 percent in 2021 to 52.6 percent, indicating increased digitilization in payments.
This sharp increase shows how Kenyans are relying on mobile platforms not only to send and receive money but also to manage liquidity and carry out everyday payments.
By adult population, mobile money and banks serves the largest number of consumers, reaching 23.2 million and 14.8 million users, respectively.
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The report shows that this dominance reflects mobile money’s intermediary role as the primary digital financial service for Kenyans, followed by banks with steady growth.
Formal financial inclusion increased in 30 counties, with the highest gains recorded in Garissa (+26.3%), Samburu (+12%), and Elgeyo Marakwet (+11%) — largely thanks to mobile money adoption
This dominance reflects its position as the primary financial tool for both rural (77.0%) and urban (89.7%) users.
Mobile money and employer are the main channels used by the adult population in Kenya to pay insurance premiums payments.
The survey also notes that gaming companies increasingly use mobile money to expand their reach, especially in sports betting, further cementing the role of mobile finance in Kenyan daily life.
Despite mobile money’s growth, barriers remain. Trust concerns affect credit and SACCOs, while eligibility rules and lack of mobile phone ownership still prevent some from accessing mobile money services.
Usage by Other Providers of Financial Services and Products
Bank usage increased to 52.5 percent, supported by infrastructure growth (resulting from increased financial access touch points) and programs like Inua Jamii.
SACCO participation grew to 11.7 percent, reflecting their broader reach, while informal group membership rose to 30.7 percent, emphasizing the continued importance of grassroots financial systems.
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Investments in securities increased to 3.1 percent, boosted by new apps and higher returns, showcasing diverse consumer financial needs. In contrast, insurance and pension uptake saw slight declines.
Fuliza overdraft usage held steady at 18.4 percent, indicating consistent demand for short-term credit. Since users of these providers and products consume them as a portfolio, the response rates are not additive.
This implies that consumers of mobile money are also consuming services and products offered by banks, insurance companies, SACCOs, pensions, among other providers.
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