The 2024 Economic Survey by the Kenya National Bureau of Statistics reveals a significant decline in mobile money subscribers from 38.6 million in 2022 to 38 million in 2023.
This decrease of 600,000 subscribers is attributed to the imposition of higher fees on mobile money transactions. Despite the drop in subscribers, mobile money transfers between users rose by 19.6% to Sh.5.5 trillion in 2023.
“Mobile money transfer subscribers decreased from Sh.38.6 million in 2022 to 38.0 million in 2023 however Mobile money transferred between subscribers increased by 19.6 percent to Sh.5.5 trillion in 2023,” KNBS stated.
The report suggests a potential further decline in mobile money subscribers if the proposed 2024 Finance Bill, sponsored by Molo MP Kimani Kuria aimed at increasing levies on M-Pesa, airtime, and bank transfers, among other services, is passed into law.
This move is expected to raise costs for mobile money transfer services, influencing consumer behavior and usage patterns.
The survey showed the Information, Communication, and Technology (ICT) sector recorded 5.8 percent growth in 2023, with domestic call traffic surging by 13.4 percent to Sh88.8 billion minutes.
The sector also witnessed a rise in the number of cybercrimes reported; 1.7 billion cyber-related crimes were reported in 2023, a rise from the 700 million recorded in 2022.
“The total number of cybercrimes reported in 2023 was 1.7 billion, a rise from 700 million in 2022.The bulk of these incidents being attributed to system vulnerabilities,” the report noted.
Kenya’s economy recorded 5.6 percent GDP growth in 2023, buoyed by growth in the agriculture, forestry, and fishing sectors.