NAIROBI, Jan. 20 (Xinhua) -- Kenya's mobile money transactions remained flat in 2023, the Central Bank said in an update released Friday evening, underlining the effects of higher inflation in the country.
The apex bank said the East African nation citizens in 2023 moved 7.95 trillion shillings (about 49.15 billion U.S. dollars) on their mobile phones, from 49.2 billion dollars transacted in 2022, the first fall in 17 years.
During the period, citizens moved the highest amount of money -- 4.87 billion dollars -- in December 2023 and the least -- 3.57 billion dollars in February, the central bank said.
Kenyans in 2023 struggled with rising inflation, which jumped to a high of 9 percent pushed up by surging cost of fuel, electricity and food, cutting consumers' spending power.
Inflation, however, declined to 6.6 percent in December 2023, which is still higher than the central bank target of 5 percent.
It is the first time since 2007 when mobile money was introduced in Kenya that annual usage has fallen. Usage has sustained growth over the years.
The number of people employed as mobile money agents stood at 322,000 at the end of December 2023 as subscriptions closed the year at 77.2 million, according to the apex bank.
Analysts noted that inflationary pressure normally cuts discretionary spending, which a majority of consumers in Kenya do via mobile money. ■
