Report: Mobile Services Generated Sh384.3 Billion In 2023

Mobile services in Kenya generated a total of Sh384.3 billion in revenue in 2023, marking a 13% increase compared to the previous year, according to the Communications Authority’s report for the fourth quarter of the 2023/2024 financial year.

SMS services contributed the least to this revenue, accounting for just 4.6%.

This decline is largely due to the rise of social media platforms like WhatsApp, which have become the preferred way for Kenyans to communicate.

Data services contributed 27.3% of the revenue, while voice services made up 27.9%.

Other mobile services, including mobile money platforms like M-PESA, accounted for 40.3%.

The report also highlights a 20.6% growth in investments in mobile services, with a total of Sh70.9 billion invested in 2023.

Safaricom continues to dominate the mobile market in Kenya, holding a customer market share of 65.9%, far ahead of its closest competitor, Airtel, which holds 29%.

Safaricom’s strong infrastructure, superior customer service, and innovative offerings keep it as the preferred choice for many Kenyans.

The company continues to lead in voice and SMS services, despite growing competition.

M-PESA, Safaricom’s mobile money service, remains a critical part of its business, growing by 19.4% in revenue to Sh139.9 billion in 2023.

With 32.41 million active customers, M-PESA is one of the largest mobile money platforms in the world. Innovations such as M-PESA Go for teenagers and the M-PESA Global Pay Virtual Visa Card have helped to broaden financial access for many Kenyans.

Safaricom’s overall performance in the 2023 financial year underscores its resilience and strategic foresight, with service revenue growing by 13.4% year-on-year, reaching Sh335.4 billion.

Despite economic challenges and market competition, the company’s customer-focused approach and strategic initiatives helped it maintain growth.

Safaricom’s expansion into Ethiopia is a major part of its growth strategy. Since launching operations, Safaricom Ethiopia has gained 4.35 million customers and achieved significant milestones in mobile money and data services.