NAIROBI, Kenya, May 21 – Subscribers of mobile money decreased from Sh38.6 million in 2022 to 38.0 million in 2023, indicating a shift in consumer behavior on patterns of making payments due to the hiked fees imposed on mobile money transactions.
The latest report on the 2024 Economic Survey released by the Kenya National Bureau of Statistics (KNBS) showed that the number of mobile money subscribers in the country dropped by 600,000 last year.
“Mobile money transfer subscribers decreased from Sh.38.6 million in 2022 to 38.0 million in 2023 however Mobile money transferred between subscribers increased by 19.6 percent to Sh.5.5 trillion in 2023,” KNBS stated.
The report findings by KNBS hinted at a at a possible trend of the numbers of people subscribed to mobile money services dropping even further should the proposed 2024 Finance Bill become law.
The Bill, sponsored by Molo MP Kimani Kuria, who also chairs the National Assembly Finance Committee, seeks to introduce new levies, including increased excise taxes on M-Pesa, airtime, and bank transfers, among others, a move that will no doubt increase charges for mobile money transfer services.
The survey showed the Information, Communication, and Technology (ICT) sector recorded 5.8 percent growth in 2023, with domestic call traffic surging by 13.4 percent to Sh88.8 billion minutes.
The sector also witnessed a rise in the number of cybercrimes reported; 1.7 billion cyber-related crimes were reported in 2023, a rise from the 700 million recorded in 2022.
“The total number of cybercrimes reported in 2023 was 1.7 billion, a rise from 700 million in 2022.The bulk of these incidents being attributed to system vulnerabilities,” the report noted.
The report conducted during the period under review showed how various sectors and industry players in the nation’s economy performed in the economic landscape.
Kenya’s economy recorded 5.6 percent GDP growth in 2023, buoyed by growth in the agriculture, forestry, and fishing sectors.
The recorded growth is a rise from the 4.9 percent recorded in 2022.
The agriculture, forestry, and fishing sectors were ranked as major contributors to the economic growth of 2023, with all three sectors leading with 19.8 percent.
Other enlisted sectors include financial and insurance activities at 16.6 percent, real estate at 13.3 percent, and transport and storage at 10.6 percent.
