Mobile Phone Cash Deals Rises to Ksh 1 Trillion in 6 Months

Mobile phones transaction rose by Sh1 trillion in the six months to June, recording a decade-high growth, recovery from Covid-19 economic fallout.

According to the Central Bank of Kenya (CBK) data, M-Pesa, Airtel Money and Telkom’s T-Cash agents handled Sh3.26 trillion, a 52 per cent rise from Sh2.14 trillion in a similar period last year when Kenya was hit hard by the Covid-19pandemic.

This record value reflects the progressive economic recovery that follows the pandemic which shed jobs and led to business closure. With the easing of the restrictions and rollout of the Covid-19 vaccines, economic activity burgeoned, pay cuts were reversed and hiring resumed.

CBK governor Patrick Njoroge has explained that the economic recovery started in the fourth quarter of last year, supported by agriculture, real estate and the financial sectors, months after Kenya eased the Covid-19 restrictions through phased re-opening of various sectors.

The restrictions, which the State imposed in March last year, included a ban of movement into and out of four counties, including Nairobi and Mombasa, suspension of international and domestic flights, closure of bars and eateries and a dusk to dawn curfew that cut operating hours for businesses and hit their sales.

However, the easing of the restrictions that started in July last year and the rollout of the Covid-19 vaccines boosted economic recovery with firms scaling up operations, hiring more staff and reversing pay cuts.

According to the International Monetary Fund, Kenya economy’s real GDP growth will jump to 7.6 per cent this year, up from a 0.1 per cent contraction in 2020.

The convenience in the use of mobile money and increased adoption by individuals
and companies could have been a major factor that led to the surge.

BY PHILLY OPERE