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Mobile money service providers have outpaced banks in enabling Kenyans to access financial services.
According to the 2014 Global Findex report released on Tuesday by the World Bank, 19 per cent of Kenyan adults are said to only operate mobile money accounts compared to only 16 per cent who deal with banks.
Development Research Group Consultant Dorothe Singer who co-authored the report, said mobile money accounts appeal to the unbanked by providing more convenient and affordable financial services.
“In 2014, the breakdown of the overall account ownership which stood at 75 per cent included 16 per cent of adults in Kenya who reported having a financial institution account only, 39 per cent a financial institution and mobile money account, and 19 per cent only a mobile money account,” Ms Singer said.
The growth signifies a narrowing space for banks and other traditional financial service providers as majority of the unbanked show higher likelihood to open mobile service accounts.