The number of mobile money subscriptions has been slowing down in the last three quarters after the introduction of biometric data registration.
According to the Communications Authority of Kenya’s quarterly report, the uptake has been steadily declining since last year.
This is attributed to the decommissioning of the USSD customer acquisition channel, and absolute adoption of the app channel for SIM registration.
As at 31 December, 2021, the number of active mobile SIM subscriptions was 65.08 million, compared to the 64.89 million subscriptions recorded by end of September, representing a marginal increase of 0.30 per cent
A report by the CA covering July-September 2021 shows that the number of mobile money subscriptions reduced by 0.2 per cent to stand at 64.9 million, attributed to an increase in inactive SIM cards as a result of subscribers defaulting on digital loans.
The mobile penetration rate in the country stood at 133.6 per cent in 2021, an increase from 129.1 percent the year before.
This was aided by improved digital inclusion and the policies, which encourage ownership of multiple SIM cards.
With the designs of mobile phones becoming more adaptable to accommodate dual and multiple SIM cards, a person may have many lines registered under different telcos.
Digitisation has also prompted businesses to have SIM cards for payment of services, including Safaricom Lipa na M-Pesa for businesses and Internet service providers.
“At the start of 2021, usage of mobile money services was expected to decline or slow down, following the lifting of some of the Covid-19 containment measures relating to the financial sector,” said the regulator.