Kenya’s mobile money landscape is shifting, with Airtel Money steadily chipping away at M-PESA’s long-standing dominance. In the year leading up to September 2024, Airtel Money’s market share more than doubled from 2.9% to 7.6%, marking a significant milestone for the Safaricom competitor. Meanwhile, M-PESA’s share dropped from 97% to 92.3%, its lowest in years, according to data from the Communications Authority of Kenya (CA).
The rapid rise of Airtel Money has been largely driven by its cost-effective approach. The platform offers free Airtel-to-Airtel transactions, lower cross-network transfer fees, and more affordable withdrawal charges than M-PESA. With affordability playing a crucial role in consumer decisions, more Kenyans are turning to Airtel Money for their daily transactions.
“Subscriptions to mobile money services increased from 39.8 million to 40.6 million, translating to a penetration rate of 78.9% during the reference period,” the CA reported. The surge in users reflects growing competition in a market where over 40 million Kenyans rely on mobile money for payments, savings, and business transactions.
Airtel Money’s pricing strategy is making a noticeable impact. Sending KES 1,000 ($7.70) to another network costs just KES 11 on Airtel Money, compared to M-PESA’s KES 13 ($0.093). Similarly, withdrawing the same amount costs KES 29 ($0.22) on Airtel Money—slightly cheaper than M-PESA’s fees. These small differences add up, making Airtel Money an increasingly attractive alternative.
Beyond pricing, Airtel Money has been addressing one of its long-standing weaknesses—limited access points. In 2024, it partnered with major retail chain Naivas to expand its agent network, ensuring users can deposit and withdraw money conveniently. The move is part of a broader effort to close the gap with M-PESA, which boasts the largest mobile money agency network in the country.
The overall mobile money agency network in Kenya has grown substantially, reaching 365,000 agents by September 2024—up from 347,700. However, full interoperability between mobile money agents remains a work in progress. While customers can now send money across different networks and make cross-platform payments, agent interoperability—which would allow withdrawals and deposits at any agent, regardless of service provider—has yet to be fully implemented.
Regulatory Changes and a Bigger Market Share
The Central Bank of Kenya (CBK) has been actively shaping the industry’s future. In 2024, it raised the daily mobile money transaction limit from KES 300,000 ($2,322) to KES 500,000 ($3,870), a move designed to attract high-value customers and businesses. The new limit enables customers to store larger amounts in their mobile wallets without needing to withdraw or return funds, making mobile money even more appealing for business transactions.
As Airtel Money continues its aggressive expansion, its growing market share signals a shift in Kenya’s mobile money industry. While M-PESA remains the dominant force, Airtel Money’s affordability, increased accessibility, and regulatory backing are positioning it as a serious competitor. Whether this momentum will lead to long-term disruption remains to be seen, but one thing is clear—Kenya’s mobile money market is becoming more competitive than ever.
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4 replies on “Airtel Money Gains Ground as M-PESA’s Grip on Kenya’s Mobile Money Market Loosens”
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