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Kenya has one of the highest adoption of mobile payments globally. Moreover, the young and affluent population in Kenya with high disposable income is not apprehensive of making mobile payments. Rural consumers are increasingly making purchases using their mobile devices. These factors are attracting entrepreneurs in Kenya to try new businesses that will offer those products and services that suit the market the most. The country already has a strong base of consumers engaged in peer-to-peer mobile payments. This sets the platform for growth of mobile commerce. PayNXT360 expects mobile commerce to push the average value per transaction and drive Kenya’s growth story over the next five years. Transaction value of mobile commerce is expected to record a CAGR of 19.2% during 2016 to 2020.
SasaAfrica, a Kenya based women owned and operated social enterprise offers ecommerce platform for women artisans and vendors with the objective of creating micro-enterprises using mobile devices. Several other women groups in Tabaka are also selling their artifacts to the world by posting images of their products on the web. Lower communication costs to target a wider market are understood to be the motivating factor for startups to take the ecommerce route.
However, the entrepreneurs are likely to face few challenges in the current business environment in Kenya – disruptive mobile network and infrastructure. The fluctuating mobile network, improper road infrastructure, and lack of electricity will pose significant hurdles for ecommerce / mcommerce retailers. Despite these barriers, small businesses and entrepreneurs are expected to find their way through the mcommerce boom in Kenya.
To know more and gain deeper understanding of mobile payment industry in Kenya, click here.
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