Kenya: Nearly two-thirds of people use mobile phones for banking
Sixty percent of Kenyans use mobile phones for banking and financial services, according to a new study from the Kenya Bankers Association (KBA).Sixty percent of Kenyans use mobile phones for banking and financial services, according to a new study from the Kenya Bankers Association (KBA).
KBA Director for Research and Financial Markets Jared Osoro told Capital FM that 71 per cent
rural residents use mobile phones more for financial transactions, while this figure is 51 per cent in urban areas.
Some 48 per cent of respondents said that they use their phone for utility payments and 22 percent said they use it to pay for mobile phone bills.
The report also indicates that cash withdrawals and deposits are the main banking transactions undertaken by the respondents,
76 per cent and 67 per cent respectively.
Figures from the Central Bank of Kenya show that the mobile money market has about 17 million users transferring Sh2 billion (€17,1 million) daily.
According to the World Bank's '2014 Global Financial Development Report: Financial Inclusion', mobile banking has played a key role in expanding financial inclusion among low-income populations in countries such as Kenya.
The poor benefit the most from technological innovations, which make financial services cheaper and easier to access. Low-income economies, especially those with remote, sparsely populated areas, have much to gain from allowing the provision of financial services outside of established bank branches, according to the report.