How Corona Virus in Kenya is Affecting Mpesa Revenues Post Covid19

Mpesa’s inextricable link with Kenya’s informal sector means its fully exposed to the impact of Coronovirus on biashara.

It’s fair to say Kenya’s predominantly informal sector is currently under shock, due to the impact of the rona and the measures and mitigations that have followed: quarantines, social distancing rules, curfews, restrictions and possibly lockdowns.

Mpesa’s inextricable link with Kenya’s biashara economy fully exposes it to this shock. Newly appointed CEO Peter Ndegwa of Safaricom and M-Pesa admitted to Reuters , that the mobile payments darling of Africa and East Africa is fully dependent on the economy of Kenya.

It has only been a month of subdued biashara, but the new Mpesa CEO already expects a 7.3% decline in Mpesa revenues of upto $52 million this quarter. 

Unless a vaccine or cure can be found, and a resumption to the biashara economic levels to Pre-Covid19, Mpesa revenues are likely to be worse than this first quarter for the forseeable future.

Here is why

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