Kenya’s mobile money sector is undergoing notable changes, according to Q1 2025 data from the Communications Authority of Kenya (CA).
Safaricom’s M-PESA saw its market share drop to 90.8%, continuing a six-quarter downward trend, while Airtel Money surged to a record 9.1%, up from just 3.1% in December 2022.
Factors Driving Airtel’s Ascent
- Pricing Advantage: Airtel Money offers more affordable transaction fees. Sending KSh 1,000 across networks costs KSh 11 on Airtel versus KSh 13 on M-PESA.
- Customer Incentives: Campaigns like “Rudishiwa” feature fee refunds and cashbacks to attract users.
- Agent Expansion: Airtel’s agent network grew nearly 78% year-on-year, bolstered by partnerships with Naivas and exclusive Airtel Money outlets, narrowing M-PESA’s distribution lead.
- Interoperability Gains: The Central Bank of Kenya’s mobile wallet interoperability rollout has made switching and transacting across platforms easier, weakening Safaricom’s network effects.
To regain its footing, Safaricom announced a US$309 million investment in May 2025 to modernise M-PESA into a cloud-native, scalable platform aimed at enhancing speed, reliability, and innovation.
Mobile Subscriptions Surge, Airtel Leads Growth
Kenya’s mobile subscription market grew 6.7% in Q1 2025, rebounding after three stagnant quarters.
The CA attributes the bulk of the 5.38 million new active SIM cards to Airtel, which added 3.01 million subscribers, expanding its base to 24.53 million.
Safaricom followed with 1.67 million new subscribers, bringing its total to 48.24 million.
Speaking during the launch of the ‘Na Bado Tunagrow’ network coverage campaign, Ashish Malhotra, Managing Director of Airtel Kenya, cited expansion investments for the company’s record 32.2% market share, stating:
“We are committed to Kenya, and while we have made huge investments, our mission of enriching lives and driving progress is still not done.”
“With the recent upgrade of our Airtel Money platform, which brings speedy, reliable, and innovative services, we are seeing more Kenyans trusting us with their financial needs…”
IFC Injects US$70M into Airtel Kenya
The International Finance Corporation (IFC) will provide KSh 9.054 billion (US$70 million) to Airtel Kenya as part of a US$100 million regional financing package for Airtel Africa operations.
The funds will:
- Support network expansion
- Upgrade infrastructure
- Refinance existing debt
Airtel Kenya’s asset-light strategy—leasing rather than owning towers—has reduced costs but limited geographic coverage compared to Safaricom.
Mobile and Smartphone Penetration
Kenya now has 74.9 million connected mobile phones.
- 42.3 million smartphones
- 32.6 million feature phones
This puts national mobile penetration at 143.0%, with smartphones at 80.8% and feature phones at 62.2%.
Competitive Pressure Intensifies
As Airtel ramps up technology deployments and subscriber outreach, the mobile financial services market is becoming more competitive.
Mobile money subscriptions rose 7.3% to 45.4 million, while active SIM subscriptions reached 76.2 million, pushing penetration to 145.3%.
CA’s Q3 report concludes:
“The mobile money market continues to evolve, offering users more flexibility and improved digital financial solutions.”
Kenya’s digital economy continues to expand, propelled by intensified competition among telcos and the emergence of fintechs.
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