Following approval from the Central Bank of Kenya (CBK), Airtel Money Kenya has announced an increase in its daily transaction limit from Ksh 300,000 to Ksh 500,000. This decision aligns with Safaricom’s recent announcement of raising the daily transaction cap for its mobile money service, M-PESA, to Ksh 500,000. However, just like M-PESA customers, Airtel Money customers can only send Ksh 150,000 at once.
Anne Kinuthia-Otieno, the Managing Director of Airtel Money in Kenya, expressed her optimism regarding this move, emphasizing its positive impact on the Kenyan economy. She further highlighted that this change would provide customers and partners with greater flexibility for conducting larger transactions and managing their finances more effectively.
“Businesses can now conduct their operations more conveniently, and efficiently, and consumers can access a wider range of goods and services, contributing to economic growth, job creation, and improved financial stability in Kenya,” Kinuthia-Otieno said.
Airtel’s Growth Strategy
In Kenya’s dynamic mobile money landscape, Airtel currently commands a market share of 3.4%, positioning itself as the second contender after Safaricom’s dominant M-PESA, which holds an impressive market share of 96.5%. Telkom Kenya’s T-Kash holds the third spot with a 0.1% market share.
Airtel Kenya is relentlessly expanding its reach within the mobile money realm. The company recently revealed its threefold increase in the number of mobile money agents, aiming to reach an impressive tally of 120,000 agents by the culmination of 2023.
Furthermore, Kenya’s mobile money subscriptions experienced a slight decline from 38.6 million in the previous quarter to 38.4 million in March 2023. As a result, the penetration rate decreased by 2.2% from the last quarter, now standing at 76.0%. This decline can be attributed to reduced mobile money service activity observed during the reviewed quarter.
In October 2022, Airtel Kenya underwent a formal separation from its mobile money business, Airtel Money. The Central Bank of Kenya highlighted that this transition will primarily benefit payment service providers (PSPs) by enabling them to safeguard their CBK-regulated activities from potential disruptions caused by other commercial endeavors.