Better than Cash: Kenya Mobile Money Market Assessment

This paper presents the outcomes of a market assessment conducted by USAID in Kenya to understand the use of mobile money.

Kenya is the world leader in mobile services. Safaricom, a mobile network operator (MNO) launched M-PESA mobile money services in 2007 in Kenya. M-PESA services include not just standard money transfers and airtime purchase, but also payment of salaries, utility bills, and also buying of goods and services at both online and physical merchants. Three other MNOs have also begun to offer mobile money services in the country, namely, Airtel, Orange, and Essar (Yu). Many aid donors and their implementing partners have already begun to integrate mobile money into their programs. USAID therefore interviewed its partners to identify the various ways they were using mobile money to determine the key benefits and challenges they faced. Findings include:

• Focus of mobile money is primarily on driving its innovative uses within programs and businesses, rather than pure growth in usage;
• USAID’s partners report that accessing corporate accounts is difficult and time consuming, especially with Safaricom. This prevents the use of mobile payments in operations and programs;
• USAID/Kenya can support this sector by encouraging collaboration and providing general information and education to partners that are trying to implement mobile money.