NAIROBI, Kenya, March 28 – Kenya’s economy received a significant boost from mobile money services, contributing Sh3.1 trillion ($24 billion) to the country’s Gross Domestic Product (GDP), according to a new report.
The study, titled ‘Mobile Money’s Impact on Economic Growth in Five African Markets’, mobile money’s influence was particularly felt in the manufacturing and real estate sectors, where digital transactions played a vital role in financial inclusion and business growth.
In Kenya, mobile money accounted for 8.6 percent of total GDP, marking a 20 percent rise from 2022.
“The findings reinforce previous research showing that mobile money plays a crucial role in driving long-term economic growth and financial inclusion,” read the report.
Across five African nations—Côte d’Ivoire, Ghana, Kenya, Senegal, and Tanzania—mobile money services increased GDP by an estimated 8 percent to 10 percent compared to a scenario without digital transactions.
This surge has more than doubled over the last decade, from 3.9 percent in 2013, surpassing Sub-Saharan Africa’s regional average of 4.5 percent.
The report also identifies regulatory challenges that could hinder further growth.
Kenya, for example, faces obstacles such as the lack of government-driven identity verification solutions and its grey-listing by the Financial Action Task Force (FATF) in 2024.
“Strengthening regulatory frameworks could unlock even greater economic potential,” read the report.
Beyond Kenya, mobile money significantly impacted other economies. In Tanzania, it contributed $15 billion to GDP, with the manufacturing, finance, and insurance sectors being the primary beneficiaries.
Côte d’Ivoire saw mobile money’s economic contribution rival that of the information and communication sector, while in Ghana, it matched the influence of the manufacturing and transport industries.
A key development in 2024 was the reduction in cross-border mobile money remittance costs, with average transfer fees dropping to 3.54 percent, making it the most affordable option globally.
However, mobile money still accounts for only 4 percent of international remittances, signaling untapped potential for expansion.
With continued investments in digital infrastructure and supportive policies, mobile money could further accelerate economic growth across Africa, solidifying its role as a transformative financial tool.
