New case study on enabling mobile money policies in Kenya: Fostering a digital financial revolution

GSMA is pleased to announce the release of a new case study showcasing the journey Kenya has taken towards what the Governor of the Central Bank of Kenya, Prof. Njuguna Ndung’u, calls a ‘digital financial revolution.’

In the span of just seven years, Kenya’s financial services landscape has been dramatically altered. In 2006, only 26.4% of adults in the country had access to formal financial services, but by 2013, this had more than doubled to 66.7%. Today, more people are sending and receiving money, opening bank accounts, and applying for loans than ever before.  Kenya has been a phenomenal success story for mobile money, with an estimated 59% of the adult population actively using mobile money services[1] and transacting over KES 192.6 billion (USD 2.2 billion) per month on average.

This case study traces the early stages of mobile money development in Kenya, from its conceptualisation to the design and codification of a suitable regulatory model, showing that by creating an enabling regulatory environment and nurturing new technologies such as mobile money, regulators can be agents of change for financial inclusion. It also explores current issues and the future outlook of mobile money in Kenya. More significantly, this publication demonstrates that mobile money has not only been a catalyst for financial inclusion—it has also stimulated the development of the digital ecosystem in Kenya.

While acknowledging the important role that mobile money has played in fostering financial inclusion and developing the digital ecosystem, Prof. Ndung’u reminds us that “more remains to be done, as 25% of Kenya’s bankable population still cannot access any form of financial services. Moreover, there is still room to enhance the usage and quality of financial services. Mobile phone technology holds the key to drawing more Kenyans into the financial services net.”

This case study follows the release of an infographic in September 2014 on how mobile money has contributed to the digitisation of Kenya’s retail payments systems, fostering financial inclusion and the growth of the mobile ecosystem in the country.

Read the case study here.


[1] GSMA, March 2014 estimate

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