Mobile money transfers from abroad preferred by Kenyans

NAIROBI: For many Kenyans abroad, sending money home through direct mobile money transfers is becoming the preferred option as competition in the money transfer business heats up.

Online money transfer firm, WorldRemit has indicated that majority of its clients prefer to transfer money to mobile wallets of recipients in Kenya even though they have the option of sending it to their bank accounts or have them pick the cash at  Kenya Commercial Bank outlets across the country.

The firm, headquartered in London, is currently marking a milestone of a million money transfer transactions that have been made to Kenya through it.

The transactions are worth an estimated Sh13 billion since they began offering money remittance services to Kenya in March 2011.

Most of that money was sent via instant mobile money transfers, with Sh13,000 being  the average amount sent per transaction. The firm also allows clients abroad to buy airtime for recipients’ in Kenya.

WorldRemit’s Ben Leong said the firm now sends more than 50,000 transfers to Kenya every month, with over 90% going to Mobile Money accounts such as M-Pesa and Airtel Money.

Alix Murphy, Senior Mobile Analyst at WorldRemit said mobile Money has played a key role in the popularity of WorldRemit money transfers to Kenya, as Kenyans prefer the speed and convenience of sending remittances directly to mobile phones.

“Kenya is renowned for leading the world in Mobile Money and we’re now seeing Kenyans at the forefront of adoption of Mobile Money remittances,” she said Wednesday in Nairobi

She added: “As is being showcased in Kenya, Mobile Money will become the method of choice for receiving remittances in many countries across the world.”

The money transfer firm is seeking a piece of the Sh150 billion that on average Kenyans abroad send home every year.

Some money transfer firms offer no mobile money transfer services and cash can only be picked from specified agents.

Around three million Kenyans live abroad with large communities in countries such as the United Kingdom, United States and Canada.

WorldRemit’s global headquarters are in London, UK with regional offices in the United States, Canada, Japan, Australia and New Zealand.