Kenya: 34,000 mobile money agents close shop as direct payments surge

A profound transformation is reshaping the Kenyan financial sector. According to data from the Communications Authority of Kenya reported by TechCabal, the country lost approximately 34,000 mobile money agents between March and June 2026. The physical network dropped from 602,470 to 568,463 registered service points, representing a 5.6% decline in a single quarter.

This reduction in physical kiosks does not reflect a slowdown in overall activity. During the same period, the total number of mobile money subscriptions grew by 1.2% to reach 54.01 million users, marking a 13.2% annual jump. The market remains largely dominated by Safaricom, which holds 88.8% of subscriptions, while Airtel Money accounts for 11.1%.

Consumer habits explain this paradox. Users are now utilizing features such as Buy Goods, Pochi la Biashara, or PayBill numbers to pay merchants and bills directly from their phones. The rise of direct bank connections also avoids the need for cash conversion, depriving traditional agents of their commissions on deposits and withdrawals.

The massive adoption of smartphones is accelerating this transition, with the country counting 52.26 million smartphones in June 2026 compared to 50.18 million in March. Faced with a drastic drop in transaction volumes, rising rents and business permit costs, as well as increased tax scrutiny from the administration, thousands of small independent operators are finding themselves forced to cease operations.

Our perspective

The rapid digitalization of the Kenyan economy illustrates the continent's technological ingenuity, but it also serves as a reminder of the urgent need to protect small local entrepreneurs. Financial inclusion must not come at the expense of the thousands of local jobs that built the success of the African model. It is up to the operators to reinvent these essential physical networks.