Airtel Kenya’s mobile money platform, Airtel Money, has significantly increased its market share, rising from 2.9% to 7.6% in the year ending September 2024, according to the Communications Authority of Kenya (CA).
This growth has been attributed to free Airtel-to-Airtel transfers, competitive cross-network transaction fees, and lower withdrawal charges compared to Safaricom’s M-PESA.
During the same period, M-PESA’s dominance in the mobile money sector shrank, with its market share dropping from 97.0% to 92.3%. Once commanding a 98% share, M-PESA has faced rising competition as Kenyans increasingly prioritize affordability in their financial transactions. The CA noted that mobile money subscriptions grew from 39.8 million to 40.6 million during the year, bringing the penetration rate to 78.9%.
Airtel Money’s aggressive strategy began in 2020 when it eliminated fees for Airtel-to-Airtel transfers to attract users. Today, sending KES 1,000 ($7.7) to other networks costs KES 11 on Airtel Money, compared to M-PESA’s KES 13 ($0.093). Withdrawal fees are also lower, with Airtel charging KES 29 ($0.22) for the same amount—KES 2 less than M-PESA.
To overcome its historically limited agent network, Airtel Money expanded its access points by partnering with Naivas, a leading supermarket chain, in 2024. This move complements efforts by the Central Bank of Kenya (CBK) to promote mobile money interoperability, ensuring seamless transactions across providers. While customers can now send money between networks and make interoperable utility payments, agent-level interoperability—where customers can use any agent regardless of the provider—remains unrealized.
The absence of full agent interoperability has preserved M-PESA’s dominance, despite CBK’s pledge to implement this feature by 2024. As of September 2024, the mobile money agency network grew to over 365,000 agents, up from 347,700 the previous year.
CBK’s 2024 decision to raise the daily transaction limit from KES 300,000 ($2,322) to KES 500,000 ($3,870) has further encouraged Airtel Money’s adoption among high-value customers and businesses. Users can also retain funds received from other wallets for over a week without the need to withdraw or return the money to the sender.
With over 40 million mobile money users in Kenya, Airtel Money’s continued rise challenges the long-held dominance of M-PESA, highlighting the growing demand for affordable and accessible financial services in the region.