Airtel Money Gains Ground As M-Pesa's Market Share Declines
— written by Francis on Jan. 29, 2025, 6:32 p.m.
In the dynamic landscape of Kenya's mobile money sector, recent data indicates a notable shift: Airtel Money has been steadily increasing its market share, while Safaricom's M-Pesa is experiencing a gradual decline.
According to the latest statistics from the Communications Authority of Kenya, Airtel Money's market share in terms of subscriptions rose to 7.6% in the quarter ending September 2024, up from 6.6% in June. Conversely, M-Pesa's dominance decreased to 92.3% from 93.4% over the same period. This marks M-Pesa's lowest share since the authority began reporting these figures in September 2022, when it held a 96.8% share compared to Airtel Money's 3.1%.
This trend is not isolated to a single quarter. Between June 2023 and June 2024, Airtel Money expanded its market share from 2.8% to 6.6%, while M-Pesa's share declined from 97.1% to 93.4%.
The overall mobile money landscape in Kenya is also expanding. Total subscriptions increased from 39.8 million in June to a record 40.6 million in September 2024, achieving a penetration rate of 78.9%.
Airtel Money's growth can be attributed to strategic initiatives aimed at enhancing its service accessibility. In November 2024, Airtel partnered with Naivas Supermarket, enabling customers to deposit and withdraw cash at all Naivas branches nationwide. This move significantly bolstered Airtel Money's agent network, addressing previous limitations in service reach.
While M-Pesa remains the dominant player, these developments suggest a shifting competitive landscape in Kenya's mobile money market. Airtel Money's strategic partnerships and focused efforts to expand its agent network are contributing to its rising market share, indicating a more competitive environment in the future.
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