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Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.
The Global System for Mobile Communications Association (GSMA) released the 2024 report on the state of the mobile money industry worldwide and in Africa.
The report noted that despite the growth of digital financial services, many users are unable to access them without help or may be unaware of how they might benefit their lives due to low levels of digital and financial literacy (DFL).
GSMA noted several barriers to the adoption of DFL in Kenya and other African countries that are classified as low—and medium-income nations.
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Speaking to TUKO.co.ke Nairobi-based fintech consultant Samuel Kagwe noted that the bundling of access to communication and access to mobile money in SIM Cards has worked well in Kenya.
"This strategy, however, has perhaps gotten to the point of diminishing returns. New SIM card registrations do not translate to an increase in mobile money users anymore. To stretch the mobile money adoption further, especially in the East African market, unbundling of services has to happen as well as increased education on fintech and digital money systems within the school system to increase financial literacy among Kenyans and other Africans," Kagwe said.
According to GSMA, here are the barriers to the uptake of digital financial literacy in Kenya and Africa:
In other news on mobile money services, Safaricom's M-Pesa was re-certified by the GSMA for secure and reliable mobile money services.
M-Pesa had 31.5 million active users in Kenya, processing over KSh 40.2 trillion in transactions annually as of March 2024.
Safaricom CEO Peter Ndegwa emphasised M-Pesa’s critical role in advancing financial inclusion across Kenya and the African region.
The GSMA Mobile Money Certification ensures that certified providers adhere to strict standards for customer fund protection, data security, and transparency.
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
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M-Pesa and mobile money services in Kenya and Africa.
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A Financial & Digital Literacy Toolkit - UN Capital Development Fund