Mobile money affirms Kenya’s place as tech hub

Kenya is ranked top globally in the uptake of electronic commerce, driven by increased access to mobile money, a new survey shows. FILE

By DAVID HERBLING

IN SUMMARY
The study by Mobile Entertainment Forum (MEF) grades Kenya in pole position ahead of South Africa, the UK, Nigeria and the US in terms of mobile apps that allow customers to shop and pay using cell phones.
    

Kenya is ranked top globally in the uptake of electronic commerce, driven by increased access to mobile money, a new survey shows.

The study by Mobile Entertainment Forum (MEF) grades Kenya in pole position ahead of South Africa, the UK, Nigeria and the US in terms of mobile apps that allow customers to shop and pay using cell phones.

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The findings affirm Kenya’s status as the continent’s tech hub —dubbed Silicon Savannah —and the birthplace of M-Pesa, the world’s leading mobile money transfer system.

“Mobile has become the primary tool for engagement and transaction in consumers’ digital lives, creating exciting new opportunities and challenges,” said Andrew Bud, chairman at MEF.

Demand to buy goods through mobile phones is driven by money transfer services and applications, helping to shift online shoppers from the traditional mobile-based ringtones and games to high-value goods such as electronics and fashion items.

Kenyan consumers transacted a total of Sh1.7 trillion through mobile money platforms in the 11 months to November last year, highlighting the convenience of the utility that is barely eight years old.

The sustained growth of Kenya’s vibrant mobile money sector is attributed to the convenience of the solution that has broadened its traditional transfer value to include payment of utility bills such as water, rent, electricity and shopping.

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Kenya has 24.9 million mobile money users who transact across six platforms — M-Pesa, MobiKash, Airtel Money, yuCash, Orange Money and Tangaza — backed by a network of about 113,000 agents.

A 2012 consumer research by InMobi Africa, a mobile advertising network, shows that most buyers polled use their mobile phones and tablets to hunt for bargains, review product features and learnt the latest trends online before making purchases.

The consumer behaviour research revealed that tech savvy Kenyan consumers engage in “searchandising,” or use mobile gadgets to enhance their spending.