Airtel Money Kenya Targets Merchants for Growth

Bonke Michael, acting managing director of Airtel Money Kenya, told ITWeb Africa that the industry is moving in this direction. The fintech space is going [towards] the merchant space, he said.

From 3% to 11% in Under Five Years

The numbers behind that confidence are striking. According to the Communications Authority of Kenya, Airtel Money held 10.9% of the market in March, up from 3.1% in September 2021. Its agent network grew over the same period from under 20,000 outlets to 270,000.

Michael credits the growth to new use cases, a stable regulatory environment, and customer experience, which he called the most important factor. The Central Bank of Kenya’s push for interoperability also helped. Customers can now move money between Airtel Money, rival wallets, and bank accounts, which Michael says has given customers a choice.

A Second Wallet, Not an M-PESA Replacement

Airtel Money is positioning itself as a second wallet rather than a direct replacement for M-PESA, and cashback is central to that pitch. The Rudishiwa program, launched in 2023, started by offering airtime refunds. After customer feedback, it now refunds 50% of transaction fees in cash on:

• Transfers to other networks
• Bank-to-wallet and wallet-to-bank transfers
• Bill payments

The Bizna Wallet, launched in August, targets small traders by separating business funds from personal money. Customer payments into a Bizna Wallet are free up to KES250,000 (about $1,900), and merchants receive 50% cashback when moving funds to a bank or paying bills.

Growing With Banks and Retailers

Michael says his priorities are distribution, products, and partnerships. Airtel Money has partnered with I&M Bank and Absa for merchants, while KCB and retailer Naivas joined as agency partners. You can’t grow alone, so you have to grow with partners, he explained. For rural customers, the company leans on its agent network and USSD channel.

Fraud Checks and the Next Product Wave

Mobile money fraud, including SIM-swap scams, remains a challenge across the sector. Michael confirmed that new products go through internal security testing and regulatory vetting first. We don’t just come up with the product today and launch it tomorrow, he said.

The next wave will focus on loans, savings, investment, and overdrafts. Airtel Money also plans more bank and cooperative partnerships, plus branded shops for customer support. Quite a number of interesting things are coming, Michael concluded.