Airtel Money is steadily increasing its market share in Kenya’s mobile money sector, challenging the long-standing dominance of Safaricom’s M-PESA.
According to the Communications Authority of Kenya (CA), Airtel Money’s market share grew from 7.6% to 8.9% in Q4 2024, marking a significant gain as M-PESA’s share declined for the fifth consecutive quarter.
Airtel Money’s success can be attributed to its aggressive promotions, lower transaction fees, and expansion of its agent network. One of its most effective strategies has been offering transaction fee refunds as airtime, making it a more attractive option for cost-conscious consumers.
Additionally, the service’s lower transaction costs have played a pivotal role in its growth. Sending $7.7 to other networks on Airtel Money costs $0.085, compared to M-PESA’s $0.093, while withdrawing the same amount costs $0.22, slightly lower than M-PESA.
The mobile money landscape in Kenya has evolved significantly since the introduction of full interoperability in 2022. Customers can now seamlessly transfer money across different service providers, reducing the barriers to switching.
Airtel Money has capitalised on this shift by expanding its agent network, partnering with major retail chains like Naivas to provide more deposit and withdrawal points. While M-PESA still maintains a substantial advantage with over 160,000 agents, Airtel’s network is growing rapidly.
Despite its gains, Airtel Money faces challenges in its bid to dethrone M-PESA. The Central Bank of Kenya (CBK) has yet to implement agent interoperability, which would allow users to access mobile money services from any agent, regardless of their provider. If this policy is enacted, it could further level the playing field, making it easier for Airtel Money to compete.
With an estimated eight million registered users, Airtel Money remains a distant second to M-PESA’s 34 million customers.
However, its growth trajectory suggests it could continue eroding M-PESA’s dominance. The CBK’s upcoming Fast Payment System (FPS), which aims to enable instant transactions across banks and payment service providers, could also play a significant role in reshaping the competitive landscape.
As Airtel Money continues to invest in affordability and accessibility, its presence in Kenya’s mobile money market is becoming increasingly formidable. The coming years will determine whether it can sustain its momentum and emerge as a true challenger to M-PESA’s reign.
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