Kenya's Communications Authority said mobile money can prop the economy up in the wake of COVID-19 global pandemic.

Kenya’s Communications Authority (CA) believes the increase in mobile money adoption will help to sustain the economy during the Coronavirus (COVID-19) pandemic.

In its latest quarterly market report (October – December 2019), the regulator stated: “The value of Person to Person transfer over mobile money platforms hit Kshs 684.5 Billion in three months to December.”

This is compared to Kshs 665-billion in the previous quarter (July-September 2019).

“The massive transaction count not only makes mobile transactions a key cog in the economic wheel, but also stamps the fact that Kenyans can use digital finance as a lever to influence social distancing and (P2P) transactions in an infectious health crisis, such as the COVID-19,” the CA added.

Statistics from the regulator showed that consumer to government payments amounted to Kshs 9.7-billion, while consumer to business transfers was valued at Ksh294-billion.

Business to consumer transfers stood at Ksh 377.4-billion, and business to business transactions dominated with Ksh 859.6-billion, reflecting a shift to mobile within the corporate sector.

While the country battles the COVID-19 outbreak, President Uhuru Kenyatta has urged consumers and service providers to utilise digital technology to transact. Mobile transactions are understood to have increased by 50% to support SME payments.

Digital advisor Jill Lagos Shemin said in the same way mobile money grew during election violence that erupted in 2007/2008, it will become popular during this pandemic.

“The crisis represents a potential trigger event that could allow mobile money providers in many African markets to move their business away from its dependence on agents, drastically increase mobile wallet adoption, and move quickly towards a robust digital ecosystem,” said Shemin.