M-PESA, Safaricom’s mobile phone-based money transfer and payments service in Kenya, has recorded its fifth consecutive quarter of market decline as of the fourth quarter (Q4) 2024.
According to a report from the Communication Authority of Kenya (CA), M-Pesa’s market share dropped to 91% in Q4 2024, marking a 2.3 percentage point decline from the previous quarter.
Meanwhile, Airtel Money, a mobile money service offered by Airtel Africa has significantly increased its share from 7.6% to 8.9%, signaling a gradual but steady shift in the mobile money landscape.
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This shift reflects a changing competitive landscape in Kenya’s mobile money ecosystem, driven by several factors. Reports reveal that Airtel Money has capitalized on aggressive promotions, such as reimbursing transaction fees with airtime through its ‘Smarta Bundles’ launched in February 2025, alongside offering lower transaction costs.
For instance, sending KES 1,000 ($7.7) via Airtel Money costs KES 11 ($0.085), making it a more affordable option compared to M-Pesa. Also, customers receive a 100% refund of transaction fees as airtime for bank-to-Airtel Money wallet transfers, cash withdrawals, and bill payments. This refund also applies to cash withdrawals at Airtel Money agents and payments made via paybills across all networks.
Additionally, increased interoperability since 2022 has made it easier for users to switch providers, further eroding M-Pesa’s once-unshakable dominance. Airtel Money remains a more cost-effective option for transactions, a key factor in its growing appeal. To ensure that customers enjoy the improved network, the company has been on an innovation spree, developing products and services that provide value for money, convenience, and flexibility.
Similarly, withdrawing the same amount on Airtel Money is KES 2 cheaper. Additionally, Airtel has expanded its agent network by partnering with major retailers like Naivas to enhance customer accessibility. However, M-PESA maintains an extensive footprint with over 160,000 agents nationwide, reinforcing its dominance despite the growing competition.
Despite this decline, M-Pesa remains the leading platform, as almost every single household in Kenya uses it. The mobile money platform has extended financial services to the unbanked and underbanked population, providing a low-cost and accessible platform for financial transactions. Notably, M-Pesa currently serves over 34 million customers and handles transactions worth KES 40 trillion ($308.8 billion) annually.
While Airtel Money, with an estimated eight million registered users, is still a smaller player in the East African country, it is however growing rapidly through strategic initiatives like network expansion and partnerships with retailers.
The recent info from the Communication Authority of Kenya (CA), suggests Airtel Money is successfully chipping away at M-Pesa’s lead, though M-Pesa’s extensive agent network (over 160,000 agents) and entrenched user base keep it far ahead for now. The upcoming rollout of the Central Bank of Kenya’s Fast Payment System (FPS) could further intensify competition by enabling instant transactions across all financial platforms.
In recent years, Kenya has experienced significant growth in mobile money uptake, largely supported by the government’s efforts to drive financial inclusion. The total mobile money subscriber base in Kenya has continued to surge as subscribers on mobile money platforms grew to 38.7 million, indicating a penetration rate of 75%.
In 2023, the country’s mobile money market grossed KES 17.2 billion ($133.2 million), with M-Pesa leading the industry with a dominant 96.5% market share. Fast forward to the fourth quarter (Q4) of 2024, mobile money subscribers reached 42.3 million in Q4 2024, up 4.1% from the previous quarter, showing that the market itself is expanding even as shares shift.