M-Pesa agent transactions up 28 percent

Central Bank of Kenya (CBK). FILE PHOTO | NMG

By JOHN MUTUA
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Summary

• Central Bank of Kenya (CBK) data shows money handled by the agents grew from Sh1.1 trillion in similar period last year and Sh1.05 trillion in the three months to June when Kenya imposed Covid-19 lockdown measures including a daily night curfew, closure of bars and travel restrictions.
• The restrictions led to Kenya’s first economic contraction in 12 years and shed 1.72 million jobs, which hurt the flow of money in an economy where M-Pesa takes a huge chunk of the transfers.

Cash handled by M-Pesa agents rose 28 percent to Sh1.4 trillion in the three months to September after the State started easing restrictions imposed to curb spread of the coronavirus.

Central Bank of Kenya (CBK) data shows money handled by the agents grew from Sh1.1 trillion in similar period last year and Sh1.05 trillion in the three months to June when Kenya imposed Covid-19 lockdown measures including a daily night curfew, closure of bars and travel restrictions.

The restrictions led to Kenya’s first economic contraction in 12 years and shed 1.72 million jobs, which hurt the flow of money in an economy where M-Pesa takes a huge chunk of the transfers.

“Leading economic indicators for the Kenyan economy for the third quarter point to a strong recovery in economic activity from the disruptions witnessed in the second quarter of 2020,” CBK Governor Patrick Njoroge said.

The economy contracted by 5.7 per cent in the three months to June.

The restrictions included movement into and out of Nairobi and Mombasa that hurt supply goods, closure of bars and restaurants, suspension of domestic and international flights and bans on social gatherings forcing businesses and households to cut on spending.

Cash transfers dropped to Sh307.99 billion in April from Sh364.5 billion the previous month.

M-Pesa is the biggest mobile money platform handling 98.9 percent of the customers, according to the latest sector report by the Communications Authority. Others are Airtel Money and T-Kash of Telkom.