Mobile technology has seen a great increase in the country. With Kenya being the fastest in technology application, the business industry has also been revolutionalized which has seen the value of cash transacted through mobile phones rise by Sh283.37 billion in the last 12 months for the ended December 2017.
This was shown by reports from Central Bank of Kenya.
Kenya has an average of at least 9.97 Billion Shillings that are transacted via mobile payments on a day to day basis.
Last year alone, these payments hit an amount of 3.64 trillion. In December alone, the transactions amounted to Sh332.62 billion. This was an increase of Sh33.66 billion compared to November as business activities heightened after the political tension initially experienced.
According to The Communications Authority of Kenya (CA), mobile payments are mainly driven by mobile commerce adopted by most businesses and banks as compared to Person-to-Person (P2P) transactions.
The communication Authority report proved their arguments with a record of M-commerce transactions between July and September 2017 jumping to over 60 per cent year-on-year compared with P2P cash transfers that rose 14.7 per centThe report however did not disclose the actual numbers.
Earlier on last year, The Central Bank of Kenya also put regulations and new accounting standards that saw most banks reduce their unsecured loans. This however proves a better ground with the latest drive of M-commerce growing due to demand for instant low-value unsecured loans.These loans are also easily available for the consumers and thus the high number of transactions.
“All the leading banks, without exception, are actually looking at that (mobile loans),” head of financial services and risk advisory leader for East Africa at consultancy and audit firm EY, Robert Nyamu said recently
These transactions are however expected to rise higher with the merging of various mobile service providers to allow inter-servive for sending and receiving money. The process is undergoing a testing period of one month and if successful there’s no doubt that it will cause a significant change on the same.