Kenya’s mobile wallet payments market is poised for significant growth in 2024, with a projected increase of 5.7%, according to a report by GlobalData. This anticipated growth underscores the expanding adoption of digital payment solutions in the country.

Kenya has long been a leader in mobile financial services, thanks in large part to the success of platforms like M-Pesa. The GlobalData report highlights the continued momentum in this sector, driven by increasing smartphone penetration, enhanced internet connectivity, and a rising preference for cashless transactions.

The report suggests that the Kenyan mobile wallet payments market is expected to grow at a CAGR of 10.8% between 2024 and 2028, reaching KES12.7trn ($90.5bn) in 2028 as mobile phones become increasingly integrated into everyday life and consumers become more comfortable using them for payments.

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In 2023, mobile wallet transactions in Kenya accounted for a substantial portion of the country’s digital payments ecosystem. The 5.7% growth forecast for 2024 is expected to further solidify mobile wallets’ role in everyday financial transactions. This growth will likely be fueled by the convenience, security, and efficiency of mobile payment solutions, which are increasingly preferred by consumers and businesses alike.

The Communications Authority of Kenya reported a rise in active mobile subscriptions to 68 million by March 2024, up from 66.7 million in December 2023, resulting in a penetration rate of 132.1%.

Moreover, the competitive landscape in Kenya’s mobile wallet market is intensifying. Key players such as Safaricom, Airtel Money, and Telkom Kenya are continuously innovating to offer more value-added services, from peer-to-peer transfers to bill payments and e-commerce transactions. These advancements are expected to attract more users and drive transaction volumes higher.

In addition to local growth, Kenya’s mobile wallet market is also gaining attention on the international stage. Investors and fintech companies are keen to tap into this dynamic market, which serves as a model for other emerging economies.

As the market evolves, challenges such as cybersecurity and regulatory compliance will need to be addressed to maintain consumer trust and sustain growth.