Poll jitters sliced mobile money deals by Sh20.6b in Q3 - Business Today News
Connect with us

Business News

Poll jitters sliced mobile money deals by Sh20.6b in Q3

During the period, there was fear of violence with people cutting down on spending and business and, therefore, on movement of money



Mobile money use in Kenya dropped in the third quarter of the year by 2% due to the charged electioneering environment.

Central Bank of Kenya data shows about Ksh 896.9 billion (US$8.7 billion) during the period, down from Ksh 917.5 billion (US$8.9 billion) in the second quarter.

The slight decline in mobile money transactions is attributed to the elections, with Kenyans having gone to the General Election on August 8, the presidential results of the elections were however cancelled on September 1 by the Supreme Court.

The apex court ordered a fresh poll which was done on October 26, but in September, the country experienced a lot of political bickering that led to slowdown of the economy.

During the period, there was fear of violence with people cutting down on spending and business and, therefore, on movement of money.

READ: Former MPs, Marwa, Fazul eye PS jobs

In the three months, the least transactions were done in August, where a record low of Ksh 289 billion (US$2.8 billion) being transacted. In July, transactions stood at 309 billion (US$3 billion) and rose marginally in September to Ksh 308 billion (US$2.9 billion).

Ernest Manuyo, a business management lecturer in Nairobi, noted that decline in transaction was expected as business slows down when the political climate is unfavourable.

“During such times, all the people think about is their safety, therefore, in case they have disposable income, they cannot send it to others but keep for emergencies. That is how elections are disruptive but the 2 percent decline is marginal,” he said.

In 2016, Kenyans transacted 26 billion dollars on their mobile phones, with the figure expected to rise this year.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Opinion10 hours ago

All-round approach will prevent tax offences and financial crimes

Kenya has become increasingly exposed to illicit products and counterfeit goods, hence the need to take an all-round approach towards...

Economy11 hours ago

Kenya’s GDP to hit 5.7% despite debt burden

Despite a debt increase, Kenya’s GDP is expected to reach 5.7% up from 4.9% last year, according to ICAEW’s (the...

NEWS3 days ago

DPP seeks to withdraw forgery case in Sh500m Karen land suit

The Director of Public Prosecutions (DPP) has requested for withdrawal of the case against Guy Spencer Elms, the lawyer accused...

Politics3 days ago

Chebukati ‘out to fix Chiloba’

When Judge Stephen Radido delivered his ruling on Thursday setting aside IEBC chairman Wafula Chebukati’s decision to send the CEO,...

Health5 days ago

Pharmaceutical firm backs social investments in healthcare

Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, and Ashoka, the world’s largest network of social entrepreneurs, have held...

Education5 days ago

MKU ranked among 10 best universities in Kenya

Four local private universities in top 10 ranking of universities in the country.

NEWS1 week ago

4 MultiChoice traders win trip to watch World Cup in Russia

They will have an experience of a lifetime touring Petersburg, the Vodka Museum and enjoy a private boat tour along...

Bt Intelligence1 week ago

Inside the boda boda millionaire industry  

In small doses of Sh50 and Sh100, Kenyans spend Ksh600 million daily on motorcycle services

Education1 week ago

Daystar University sacks vice-chancellor

Striking students had decried mismanagement of funds and quality of education

Politics2 weeks ago

Battle for Machakos governor heads to the Supreme Court

The court faulted the IEBC returning officer for using an excel spreadsheet to record results instead of Form 37A