Economist and Presidential Council of Economic Advisors chairperson David Ndii has offered a clear explanation for the recent decline in M-PESA agent transactions across the country.
His remarks come amid growing worries from agents who have witnessed a steady drop in customer visits and reduced cash movement at their outlets.
Ndii explained that the main reason behind the decline is the fast shift towards fully digital transactions. More Kenyans are choosing to transact directly through apps, online platforms, and bank-to-mobile channels.
This behaviour has reduced the need for physical agents, especially for withdrawals and deposits. According to him, increased digital awareness has made customers more confident in completing processes without seeking face-to-face help.
He also highlighted the rise of alternative payment methods such as Lipa na M-PESA, Paybill, Pochi la Biashara, and QR code payments.
Ndii noted that as more businesses embrace cashless payments, the number of people withdrawing cash for daily use has gone down. Many customers now prefer paying digitally, which means fewer trips to agents.
At the same time, Ndii linked the reduced transaction volumes to the current economic climate.
He explained that tighter household budgets have led to fewer large and frequent cash transactions. As families cut back on spending, there is naturally less money circulating through agent tills.
However, Ndii stressed that this trend does not signal a collapse of the agency network. Instead, it marks a transition towards a more digital payment environment.
He urged agents to adjust by exploring value-added services and preparing for an increasingly cashless economy.
Ndii concluded that as technology continues to advance, the financial landscape will keep changing, and businesses must evolve to remain relevant.
