Rising smartphone ownership has lifted mobile banking uptake in recent years, with the share of banked Kenyans using the service growing from 25.3 percent in 2019 to 32.6 percent in 2024.
Commercial banks have expanded mobile applications and USSD platforms to keep pace with customer demand for faster and cheaper services, reducing reliance on branch visits and ATMs as the phone becomes the preferred point of contact for routine banking.
Industry data shows that nearly one in three adults now uses a phone to access bank services, affirming the growing role of digital channels in extending access to formal finance across both urban and rural populations.
The Central Bank of Kenya’s (CBK)’s 2024 FinAccess Household Survey shows that in towns, about 46 percent of adults bank through mobile applications compared to 27 percent in rural areas, reflecting how stronger internet connectivity and higher income levels have accelerated the shift to mobile in urban centres. The Communications Authority of Kenya (CA) estimates smartphone penetration at about 83.5 percent of active mobile devices by June 2025, or 43.8 million devices, a prevalence that has expanded access to digital platforms, including formal banking services and other everyday transactions such as e-commerce and bill payments.
The growth has coincided with increased investment by banks in mobile infrastructure as institutions align with customer preference for self-service transactions and remote account management through mobile platforms, a shift that has also reduced operational overheads and improved service efficiency.
Most lenders now operate dedicated mobile applications alongside USSD services to accommodate both smartphone and feature phone users, widening the reach and cutting transaction costs associated with physical branches while responding to evolving customer expectations for convenience and reliability.
The FinAccess data shows that education and income remain key determinants of usage, with adults holding tertiary education more likely to bank through mobile channels than those without formal schooling, while men account for a higher share of mobile-bank users than women, reflecting broader access disparities.
The adoption of mobile banking has also been supported by competition among lenders to digitise credit, deposit and payment services as customers favour real-time transactions and 24-hour access through their phones, a trend that has forced banks to innovate faster to retain market share.
Over the past decade, mobile money usage has expanded sharply, with subscriptions rising from 27.7 million in June 2015 to 47.7 million in June 2025, while the number of active agents grew from 129,000 to 373,000, according to CA data, underlining the scale of Kenya’s digital finance ecosystem and the convergence between banking and payment platforms.
Mobile-bank usage has, however, been found to be limited by factors such as cost, trust and awareness among low-income users who continue to rely mainly on mobile money services, highlighting the need for deeper financial literacy and simpler digital products.
Formal financial inclusion reached 84.8 percent of adults in 2024, marginally higher than 83.7 percent three years earlier, underlining the role of digital channels in maintaining access as banks push more services onto mobile platforms and as smartphones become nearly ubiquitous.
The CBK has, over the years, encouraged digital innovation in the sector, noting that mobile banking has improved service reach and efficiency while reducing cash handling and branch congestion for both lenders and customers, an evolution that continues to redefine banking models.
The growing dependence on phones has also allowed banks to streamline operations, expand reach and reduce transaction costs, entrenching mobile as a key driver of Kenya’s banking model and a pillar of the broader digital economy that continues to shape how financial services are delivered.