Mobile money payments grew by 6.3 percent in July with expectations of the wider growth in the coming months after the Central Bank of Kenya (CBK) approved higher transaction limits.
The CBK data shows mobile payments hit Ksh684.64 billion ($4.7 billion) during the month, up from Ksh643.76 billion ($4.4 billion) in June. It was the highest value of monthly mobile transactions since December when it was Ksh708.06 billion ($4.84 billion).
This was supported by a rise in mobile money accounts, which grew to 77.21 million in July from 76.99 million in the previous month, while active agents also increased to 330,912 up from 328,543.
Last month, the CBK allowed Safaricom and Airtel to increase the daily mobile money transaction limit from Ksh150,000 ($1,025) to Ksh250,000 ($1,708). It also allowed them to increase their mobile money wallet size from Ksh300,000 ($2,050) to Ksh500,000 ($3,416).
The new limits will apply to all transactions that make use of mobile money rails and infrastructure, including transactions between payment service providers (PSPs), banks, and other institutions that partner with mobile money providers.
The CBK, in a statement on Monday, said the new limits and wallet size will support customers, businesses, and institutions, including government agencies to make and receive digital payments in larger amounts, thereby increasing the convenience of mobile money.
“The increase in the amount transacted through mobile money, and a higher mobile money wallet, will further deepen financial inclusion and facilitate businesses that have been constrained by the size of the mobile money wallet,” said CBK.
The regulator added that the higher limits will also boost the government’s move to digitise payments for more than 5,000 government services.
On June 30, President William Ruto banned cash payments for government services and rolled out 222222 as the single-pay bill for all government services to seal revenue leakages.
The CBK has, however, acknowledged the risks that come with increasing mobile transactions and wallet limits such as money laundering, financing of terrorism, and fraud.
It called on PSPs to implement enhanced risk mitigation. “CBK will closely monitor the implementation of the approved measures, to take appropriate action where necessary and assess impact on the wider financial ecosystem,” it said.
