Project 01 · Data Analysis · Dashboard

The Rise of Digital
Payments in Kenya

An 18-year end-to-end analysis of Mobile Money & Card Transactions (2007–2026)

Data SourceCentral Bank of Kenya (CBK)
Period CoveredMarch 2007 – January 2026
Dataset Size227 rows · 22 columns
Tools UsedPython · Pandas · Matplotlib · Seaborn · Tableau
AuthorBenard Musyoka Mwinzi · March 2026
500×Mobile money growth since 2007
42%POS share of card transactions by 2024
215MMonthly mobile transactions (Jan 2026)
12×Faster growth vs card transactions
The problem

Business Context

Kenya is one of the world's most closely studied success stories in financial inclusion. The launch of M-Pesa in 2007 fundamentally transformed how millions of Kenyans access financial services. Yet despite this transformation, there was no consolidated analytical view of how the two dominant digital payment channels, mobile money and card transactions, had evolved together over nearly two decades. This project was built to answer five critical business questions:

How fast has Kenya's mobile money ecosystem actually grown, and what is its current scale?

Are card transactions growing too, or is mobile money cannibalising card usage?

How did COVID-19 and the CBK fee waiver affect each payment channel differently?

Is Kenya genuinely moving away from cash, or are ATM withdrawals still dominant?

Which months drive peak payment volumes, and how consistent is the seasonality?

Is mobile money growing faster than card transactions in structural terms?

The analysis

8 Charts. 18 Years. One Story.

Each chart below was purpose-built to answer a specific business question using CBK payments data cleaned and engineered in Python.

Chart 01
Mobile Money Growth: Accounts & Agents (2007–2026)
How fast have mobile money accounts and the agent network grown since 2007?
Finding: Registered accounts and active agents have grown in near-perfect lockstep throughout the entire period, confirming that agent network expansion is the primary driver of account adoption. The COVID-19 fee waiver in March 2020 produced a visible acceleration in account registrations as more Kenyans adopted mobile money to avoid handling physical cash. Every 1% increase in active agents corresponds to a near-equivalent increase in registered accounts and transaction volume.
Chart 02
Mobile Money Transaction Volume & Value (2007–2026)
What is the true monetary scale of Kenya's mobile money ecosystem?
Finding: Monthly transaction volume rose from just 0.02 million in March 2007 to over 215 million in January 2026, a 500× increase in 18 years. The value of transactions grew even faster in relative terms, reflecting rising average transaction sizes as M-Pesa expanded beyond small peer-to-peer transfers into bill payments, business transactions, and government disbursements. This is not incremental growth, it represents a fundamental transformation of how Kenyans transact.
Chart 03
Card Transaction Composition: POS vs ATM (2009–2026)
How is the composition of card usage changing, are Kenyans using cards to spend or just to withdraw cash?
Finding: In 2009, ATM cash withdrawals dominated card usage almost entirely. Over the subsequent 16 years, POS transactions grew dramatically both in absolute volume and as a share of total card transactions. By 2024, POS accounted for over 40% of all card transactions, a structural shift away from using cards purely as cash-access tools toward using them as payment instruments at the point of sale.
Chart 04
COVID-19 Impact: Channel Divergence (2019–2022)
How did the same external shock produce opposite effects on two payment channels?
!
Finding, the most analytically significant result of this project: The pandemic produced sharply divergent effects. Card transactions fell 25% as lockdowns reduced physical retail activity (from 6.54M to 4.92M avg monthly transactions). Mobile money accelerated following the CBK fee waiver of March 2020, which eliminated charges for transfers under KSh 1,000. The same external shock pushed one channel down and the other up, a natural experiment that clearly demonstrates the role of regulatory policy in shaping payment behaviour.
Chart 05
Seasonality: Average Transactions by Month (All Years)
Which months drive peak payment volumes, and how consistent is the pattern?
Finding: Both channels show a clear and remarkably stable December peak across all years, driven by festive spending, salary bonuses, school-related transactions, and end-of-year business settlements. January and February are consistently the slowest months across both channels and all years, a pattern that has remained stable since 2009. This seasonality has direct implications for payment infrastructure capacity planning and marketing timing.
Chart 06
Growth Index: Mobile Money vs Card Transactions (Jul 2009 = 100)
Is mobile money structurally outpacing card transactions, or are both channels growing at similar rates?
Finding: Rebasing both series to July 2009 = 100, the growth index reveals that by 2026 mobile money had reached an index of approximately 1,200+ while card transactions reached only 400–500. Mobile money is not just larger in absolute terms, it is growing 12× faster structurally, suggesting continued dominance of the payments landscape for the foreseeable future. Financial institutions ignoring this trajectory do so at their own strategic risk.
Results

6 Key Findings

Each finding is grounded in CBK data and quantified with specific evidence, not just directional observations.

01

Mobile Money Has Grown 500× Since 2007

0.02M → 215M Monthly transactions (Mar 2007 → Jan 2026)

Driven by three mutually reinforcing forces: agent network expansion, rising smartphone penetration, and deliberate regulatory support from the CBK. This is a complete transformation of the national payments infrastructure.

02

Kenya Is Structurally Moving Away From Cash

4% → 42% POS share of card transactions (2009 → 2024)

Combined with the mobile money explosion, the data clearly shows Kenyans are using digital channels for an increasing proportion of everyday payments, not just for cash access at ATMs.

03

COVID-19 Diverged the Two Channels

−25% vs +14% Card decline vs mobile money growth during COVID period

The CBK fee waiver created a natural experiment. Pre-COVID average card transactions: 6.54M/month. During COVID: 4.92M. Mobile money meanwhile accelerated, recovering to 174.32M post-COVID, demonstrating that policy interventions can rapidly reshape payment behaviour.

04

The Agent Network Is the Backbone

>0.99 Correlation: Active agents, registered accounts, and transaction volume

Every 1% increase in active agents corresponds to a near-equivalent increase in registered accounts and volume. This has major implications for rural financial inclusion strategy: agent expansion IS the strategy.

05

Mobile Money Grows 12× Faster Than Card

1,200 vs 450 Growth index by 2026 (Jul 2009 = 100)

Not just larger in absolute terms, mobile money is structurally outpacing card transactions at a ratio of approximately 12:1 since 2009. Any payments strategy that treats both channels equally misreads the competitive landscape.

06

December Peaks Are Remarkably Stable

Every year December is the peak month across both channels, 2007–2026

Festive spending, salary bonuses, school fee payments, and end-of-year business settlements create a consistent seasonal pattern. January and February are the consistent trough. This regularity allows for highly accurate capacity planning.

So what?

Business Recommendations

Findings without recommendations are just observations. Here is what the data suggests for each stakeholder group.

01

Double down on agent network investment in rural areas

The >0.99 correlation between agent density and transaction volume means that rural agent expansion is not a social good, it is a direct revenue driver. Financial institutions should model expected volume uplift per new agent before allocating network expansion budgets.

→ Banks · MNOs · Fintechs
02

Prioritise POS infrastructure investment over ATM maintenance

With POS share rising from 4% to 42% in 15 years, and the trend unbroken even through COVID, continued investment in ATM infrastructure is a declining return. Banks should reallocate maintenance and capital budgets toward POS terminal expansion, particularly at SME merchant level.

→ Commercial Banks · Payment Processors
03

Build November–December capacity buffers into payment infrastructure

The December peak is not a surprise, it is one of the most predictable patterns in this dataset, consistent across 18 years. Payment infrastructure providers, mobile network operators, and banks should plan server capacity, agent float, and customer service staffing around this known seasonal surge.

→ Infrastructure Providers · MNOs · Banks
04

Design regulatory fee policy with channel-specific behavioural effects in mind

The 2020 CBK fee waiver demonstrates that pricing policy directly and rapidly shifts payment channel behaviour. Regulators considering fee structures should model projected volume shifts across channels, not just revenue effects, before implementation.

→ Central Bank of Kenya · Payment Regulators
05

Mobile-first product strategy is not optional for any consumer-facing business in Kenya

With mobile money growing 12× faster than card transactions, any business in Kenya that has not optimised its payment infrastructure for mobile money collection, till numbers, Paybill integration, or USSD flows, is structurally misaligned with where Kenyan consumers actually transact.

→ Retailers · E-commerce · SMEs · Consumer Brands
Skills demonstrated

What This Project Shows

Skill AreaSpecific Techniques Used
Data WranglingMulti-dataset merge, type conversion, null handling, snake_case standardisation across 227-row CBK datasets
Feature EngineeringRatio features (agents_per_million_accounts), MoM growth rates, binary flags (covid_period), date decomposition
Exploratory AnalysisTime series analysis, correlation matrices (>0.99 finding), seasonality decomposition, YoY growth indexing
Data VisualisationDual-axis charts, stacked area charts, growth indices, annotated time series, all with consistent CBK-aligned styling
Dashboard DesignKPI tiles, interactive cross-sheet filters, COVID period annotations, dark theme, deployed live on Tableau Public
Business CommunicationFinding-first structure, plain-English insights, stakeholder-ready recommendations for 4 distinct audience types
Domain KnowledgeKenya payments landscape, M-Pesa ecosystem history, CBK regulatory context, COVID fee waiver policy impact
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Data Source & Attribution

All data sourced from the Central Bank of Kenya (CBK), National Payments System Statistics. CBK is the official regulator and sole publisher of Kenya's national payments data. Dataset covers March 2007 – January 2026 across two raw CSVs (Mobile Payments: 227 rows; Card Transactions: 199 rows), merged into a single 22-column analysis-ready dataset. www.centralbank.go.ke ↗

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