94% of transactions in Kenya still made in cash

KENNEDY KANGETHE

Ninety four percent of transactions in Kenya are still made in cash, according to a report by Mckinsey.

The report indicates that nine out of 10 payments are still made in cash even with increased cashless transaction technology in the country.

Safaricom’s Lipa na M-PESA is among the cashless transactions.

Safaricom General Manager Financial Services Betty Mwangi says the study indicates that there is an immense opportunity for the number of cashless payments to grow.

“We have already made investments in the public transport sector and in government transactions, which we believe are the next growth frontiers for Lipa Na M-PESA,” said Mwangi.

She said with over 32,000 active merchants and average transactions of Sh1,000 and above on the service, there has been a remarkable increase in the volume of transactions through Lipa Na M-PESA.

“A majority of our over 19.5 million registered M-PESA customers already use the service to make person-to-person transactions. With this initiative we aim at encouraging them to also enjoy the additional benefits and convenience derived from additional value added services available on M-PESA,” she explained.

She was speaking on Wednesday when she launched an eight-week consumer and merchant promotion to encourage the use of M-PESA for retail transactions, as Safaricom seeks to grow usage of the revolutionary mobile money service and entrench a CashLite culture in the country.

During this promotion, Safaricom will reward one customer each week with a fully furnished house valued at Sh12 million. Consumers will also win Sh32 million in cash and Sh16 million in airtime.

Lipa Na M-PESA merchants also stand a chance to win a pick-up vehicle every two weeks. In addition, merchants will win Sh40 million in cash.

To qualify for the promotion, customers will need to use Lipa Na M-PESA to pay for goods and services, move money between their mobile phones and their banks and/or Savings and Credit Co- operatives Society or take M-Shwari loans during the two months of the promotion.

SOURCE:CAPITALFM.