KENYA FAST FACTS KEY INSIGHTS DATA DEEP DIVE INDEXES PRICING OPERATORS CONCLUSION

FAST FACTS


VOLUME OF REMITTANCES
USD 2917,7 million
Central Bank of Kenya, 2021
AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
8%
RemitSCOPE Research, 2020
TOP 5 COUNTRIES

VOLUME OF REMITTANCES
USD 2917,7 million

Central Bank of Kenya, 2021


AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
8%

Remitscope Research, 2020


TOP 5 COUNTRIES


FINANCIAL INCLUSION
82% of adults have an account at a financial institution, incl. mobile money
FINDEX, 2017
NUMBER OF OPERATORS
sending to:
23
COMPETITIVE MARKET

Remitscope Research, 2021
paying out:
36

Remitscope Research, 2021

FINANCIAL INCLUSION
82% of adults have an account at a financial institution, incl. mobile money

FINDEX, 2017


NUMBER OF OPERATORS
sending to: 23
*COMPETITIVE MARKET

Remitscope Research, 2021

paying out: 36

Remitscope Research, 2021


KEY INSIGHTS

ACCOUNTS AND DIGITAL PAYMENTS

Ubiquitous use of mobile money and high use of second-generation products

Kenya has one of the highest financial inclusion rates in Africa with 83% of people formally financially included, driven by the high adoption of mobile money. Even in rural areas 77% of the rural population are financially included and the use of mobile is only marginally lower among women. In Kenya, 66% of customers are advanced digital financial service users, mainly determined by uptake of second-generation products such as mobile investments, crowdfunding, and overdraft solutions.

01

02
DOMESTIC PAYMENT INFRASTRUCTURE

Supportive national payment system with plans to enhance interoperability

Kenya has a well-developed national payments system to support remittances, however regional payment systems with potential to reduce costs of intra-regional remittances are underutilized.


Kenya has some-level of interoperability (a clustered-framework) between different stores of value, with Kenswitch, PesaLink (IPSL) and bilateral agreements all enabling the service.


Kenya has a well-established national ID system; ID can be verified via the real-time national database Integrated Population Registration System (IPRS) .


The CBK is reviewing its National Payment Strategy 2021-2025 outlining measures to enhance Kenya’s global lead in digital payments.


03
LICENSING & REGULATORY ENVIRONMENT

Clear, broad and inclusive regulations with no foreign exchange restrictions

Money Remittance Regulations for providers wishing to offer remittances are clear and include mobile money providers. There are 17 licenced money remittance providers (MRPs), but commercial banks and a few other financial service providers are also permitted under their licence. IMTOs do not need to be licensed but operate through commercial banks and licensed MRPs. Licensing and approvals may take considerable time.


Eligible entities can become sub agents of Banks or MRPs.


Kenya has no foreign exchange restrictions on cross-border remittances and exclusivity between IMTOs and agents is not permitted.

DATA DEEP DIVE



LINK TO KEY REMITTANCE REGULATION

The Central Bank of Kenya published Money Remittance Regulation in 2013. There are no restrictions on the type of entity that can offer remittance services, provided they meet the regulatory requirements.

INDEXES





IMPORTANCE OF
REMITTANCES

01
score
1 Senegal 88
9 Tunisia 64.5
10 Kenya 62.5
11 Cabo Verde 61.5
43 Botswana 13

DIGITAL
READINESS

02
score
1 Kenya 100
2 Uganda 100
20 Senegal 78
40 Gambia 18
41 Mauritania 12

OPENNESS
TO OPERATE

03
score
1 Kenya 100
2 Gambia 95
15 Burkina Faso 69.5
29 Guinea 34.5
30 Zimbabwe 30.5



What do these numbers mean ?



IMPORTANCE OF REMITTANCES


This is a composite score that reflects the size of formal remittance flows to the receive country, how important these are to the country's economy and, (at household level) the proportion that receive money from overseas (including informal). Weights are applied by experts. Scores out of 100.


DIGITAL READINESS


This is a composite score that reflects how ready a country is for international remittances to be terminated directly into digital accounts (including bank account and/or MM). The Index includes whether the regulation permits money to be received into mobile wallets, account ownership, and whether there is domestic MM interoperability. Weights are applied by experts. Scores out of 100.


OPENNESS TO OPERATE


A composite score that reflects where barriers to entry/operate are low for different types of market players. Factors include: lack of specific guidance for RSPs; existence of exclusivity practices; if there is a significant parallel FX market; the numbers of operators sending to a country and international remittance payment aggregators present. Weights are applied by experts. Scores out of 100.



For more information on how the indexes were calculated please download our methodology.


PRICING

LOW-COST SERVICES FOR DIGITIAL SERVICES IN THE LARGE VOLUME CORRIDORS

At 8% of the send amount, the average cost of sending remittances to Kenya is above the SDG recommended 3%, but lower than the average cost for Africa 7.7% and other intra-Africa corridors. However, in the high-volume corridors there are low-cost service providers offering end-to-end digital services under 3% of the send amount where competition is intense.

UGANDA TO KENYA, A COMPETITIVE REMITTANCE CORRIDOR

Of the 5 corridors surveyed, Uganda to Kenya was the cheapest corridor including mobile money to mobile money services and some cheap cash-to-cash services. This corridor is still considered to be largely informal. South Africa to Kenya is the most expensive corridor, averaging 10.7% of the send amount. This is skewed by a few expensive banks, but still the minimum cost is 5.2%.

DIGITAL NEW-COMERS DRIVING DOWN COSTS THROUGH INNOVATION

In recent years, digital remittance service providers, such as SendWave, WorldRemit, Eversend, ChipperCash, and cross-border mobile money services have been driving down the cost of remittances. International aggregators such as MFS Africa, TerraPay and Thunes have been playing a key role behind the scenes in facilitating these payments.

LIST OF OPERATORS

Operators sending to Kenya (23)

ACE Money Transfer
Azimo
CashMinute
ChipperCash
EcoCash Remit
Equity Direct
Maico Money Transfer
MoneyGram
Ria
Sendwave
SFX
Skrill
Small World
Walmart2World
Western Union
Wise
WorldRemit
Xoom
Dahabshiil
Hello-Paisa
Mama Money
M-Pesa
Mukuru

Operators Paying Out (36)

Amal Express Money Transfer Limited
Amana Money Transfer Ltd
Bakaal Express Money Transfer Ltd
Continental Money Transfer Limited
Dahabshill Money Transfer Limited
Flex Money Transfer Limited
Global Money Transfer Limited
Hodan Global Money Remittance and Exchange Limited
Iftin Express Money Transfer Limited
Juba Express Money Transfer Limited
Kaah Express Money Transfer Limited
Kendy Money Transfer Limited
Mobex Money Transfer Services Ltd
Real Value Money Transfer Ltd
Safaricom Money Transfer Services Limited
Tawakal Money Transfer Limited
UAE Exchange Money Transfer Limited
Upesi Money Transfer Ltd
Commercial Bank Of Africa
Co-Operative Bank Of Kenya
Diamond Trust Bank; Equity Bank Kenya
Family Bank Limited Kenya Commercial Bank
Post Bank
Kenya Womens Finance Trust
SMEP Microfinance Bank Limited
Uwezo Microfinance Bank
Airtel Money
Equitel
Safaricom Mpesa
Central Forex Bureau
Give and Take Forex Bureau
Junction Forex Bureau
Muthaiga Forex Bureau
Peaktop Bureau De Change
Sky Forex Bureau
Unimoni (Formely Known ss UAE Exchange)

FINAL THOUGHTS

EXCITING OPPORTUNITIES FOR INNOVATION

The almost ubiquitous use of mobile money across Kenya means that it is a highly digitized remittance market, with low-cost digital remittance services (less than 3%) from the main send-markets (UK, USA and Canada). Kenya has growing migration to the Middle East and is host to half a million refugees and asylum seekers. There is scope to further digitize intra-regional payments and extend services to vulnerable groups.


There is high use of 2nd generation digital financial services and a dynamic fintech sector. New product partnerships and development can drive down costs and deepen financial inclusion. Given M-PESA’s monopolistic position in the mobile money market, it is important that this does not challenge competitive pricing.


Kenya is one of the pilot countries chosen for PRIME Africa. As such, a full diagnostic report has been developed and presented to key stakeholders in the country. The diagnostic details all aspects of the remittance market, including key players, stakeholders, and recommendations and a Roadmap for Action is also available.