M-Pesa has completely changed Kenyans’ access to financial services, this is how…

News

Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing

"Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual".- Akinwumi Adesina, President of the African Development Bank

Can Cruise Lines Recover From Coronavirus?

The COVID-19 outbreak has laid waste to entire sectors of the global economy, but none faster than the cruise business. The pandemic has basically shut it down with the three largest publicly traded cruise companies suspending some, if not all, of th

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

NAIROBI, April 3 (Reuters) – The proportion of Kenya’s population with access to formal financial services rose to 83 percent from 75 percent in 2016, driven largely by mobile technology, a survey part-conducted by the central bank showed on Wednesday.

The East African nation is one of the world’s leaders in mobile money services, after telecoms operator Safaricom pioneered its M-Pesa service 12 years ago to cater for Kenyans without access to the formal banking network.

M-Pesa has since evolved from a basic SIM card-based money transfer application into a fully-fledged financial service, offering loans and savings in conjunction with local banks, plus merchant payments services.

Airtel Kenya, a unit of India’s Bharti Airtel, and Telkom Kenya Ltd also operate mobile money services in Kenya, as does Equity Group, a lender which runs virtual mobile network operator and financial services platform Equitel.

READ: M-pesa has completely transformed Kenya’s economy, this is how…

The survey by the central bank and FSD Kenya, a campaigner for financial inclusion, found that 41 percent of the population had bank accounts, meaning the broader rise in access to financial services had been driven by mobile phone services.

Kenya was ranked third on the continent after South Africa and Seychelles in terms of access to financial services. South Africa’s access stands at 90 percent while Seychelles stands at 95 percent.

Only 14 percent of the Kenyan population had bank accounts in 2006 when the survey was first carried out. The figure rose to 34.4 percent in 2016.

The latest data from the Communications Authority of Kenya shows that as of December 2018, Kenya had 31.6 million active users of mobile money transfer services.

Safaricom’s M-Pesa was the market leader with 25.57 million users, followed by Airtel with 3.77 million users. (Reporting by George Obulutsa; Editing by Jan Harvey)

- Advertisement -
- Advertisement -

Featured

SA’s banks reveal how small businesses can apply for the R1bn Oppenheimer fund

Three of South Africa’s major banks have revealed to CNBC Africa how small businesses can apply for funding from the South Africa Future Trust. This is what they had to say.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Applications open for Rupert family’s R1bn fund, here’s how to apply

As small businesses around South Africa feel the weight of the country’s 21 day lockdown and the COVID-19 pandemic, BUSINESS/PARTNERS has revealed...

How to protect your mental health amid the coronovirus pandemic

The coronovirus pandemic is causing high levels of anxiety all over the world. For some, coping with lockdowns hasn’t been easy and there are concerns social distancing and isolation could negatively impact mental health. Dr Linda Blokland, Acting Head of Department at the Student Counselling Unit at the University of Pretoria joins CNBC Africa for more.

Altron eyes London listing for Bytes UK

Altron plans to separate its UK assets from its African operations via a London listing. The technology group says the listing, still at planning stage will unlock value for its shareholders. Mteto Nyati, CEO Altron joins CNBC Africa for more.

Siemens donates R500, 000 towards fight against COVID-19 in South Africa

In a bid to help alleviate the impact of COVID-19 in South Africa, the Southern and Eastern African division of the multinational conglomerate, Siemens, has donated R500, 000 to the Solidarity Response Fund.
- Advertisement -

More Articles Like This

- Advertisement -