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Mobile Money still king amongst Kenya’s unbanked – CA
By end of September 2025, the total mobile phones connected to mobile networks was 75.0 million, translating to a penetration rate of 143.1 per cent, out of which 59.5 per cent were smartphones. As shown in Figure 8, Smartphone and feature phone penetration rates stood at 85.2 per cent and 57.9 per cent, respectively.
By Steve UMIDHA
Mobile money remains a dominant and vital financial means of cash transfer for Kenya’s unbanked population, according to the latest figures by the Communications Authority of Kenya (CA), with the sub–sector registering a 93% penetration rate in mobile money subscriptions of 48.6 million in the first-quarter sector statistics report for the financial year 2025/2026, covering three months from July to September 2025.
The number of such subscriptions stood at 47.7million by the end of June 2025 and 40.6million by the end of September 2024, signaling a steady growth over 12 months.
“Mobile money continued to play a key role in driving financial inclusivity, especially amongst the unbanked,” noted CA in its report released Monday, December 2025.
Indeed, the use of mobile money, which is largely dominated by Safaricom’s M-Pesa, has been a paradigm shift in bridging the financial inclusion gap, where conventional banking infrastructure is limited.
According to the 2024 FinAccess Household Survey Report (often referred to in 2025 as the current data source), approximately 9.9 percent of Kenyan adults remain financially excluded from both formal and informal financial services, tranalating to approximately 5 million Kenyans who are unbanked.
The model continues to drive financial inclusion for millions without bank access, empowers small businesses, and boosts rural economies by providing secure, low-cost transactions for both payments, savings, and overdraft credit facilities, popularly known as Fuliza in Swahili.
As a result, mobile money has significantly reduced reliance on cash even before the advent of COVID–19, as the pandemic acted as a major catalyst for the widespread adoption of phone and digital transactions to minimize physical contact and the virus’ spread.
Other sectors’ performance
During the first quarter of the 2025/26 Financial Year, CA data shows that the Kenyan ICT sector was marked by growth in mobile and fixed services. There was an increase in SIM penetration, device penetration, especially smartphones, as well as mobile traffic.
Further, mobile data, especially 4G, remained fundamental in providing internet connectivity across the country.
The postal and courier sub-sector experienced mixed trends, with the designated postal operator recording a decline in domestic letters and parcels, whereas the private couriers reported growth in both items. Overall, the broadcasting sub-sector recorded growth in subscriptions, mainly driven by digital terrestrial and direct-to-home services.
Competition by Telcos
Mobile telco, Safaricom PLC, maintained the highest market shares across mobile subscriptions, mobile broadband, and mobile money at 65.3, 62.7, and 89.7 per cent, respectively, during the period under review.
Safaricom PLC maintained lead in fixed data subscriptions market shares at 35.6 per cent with Jamii telecommunications Ltd and Wananchi Group Limited coming second and third with market shares of 20.4 per cent and 11.8 per cent, respectively.
The postal and courier sub-sector experienced mixed trends, with the designated postal operator recording a decline in domestic letters and parcels, whereas the private couriers reported growth in both items. Overall, the broadcasting sub-sector recorded growth in subscriptions, mainly driven by digital terrestrial and direct-to-home services.