What happened

On Monday, former Central Bank of Kenya governor Patrick Njoroge publicly urged financial regulators and mobile money operators to consider a structured bonus payout scheme for digital wallet holders. Njoroge argued that a targeted incentive could accelerate financial inclusion, deepen usage of electronic payments, and boost the formal economy. He did not specify an exact amount or timeline, but emphasized that the bonus should be tied to regular wallet activity such as receiving salaries, paying bills, or conducting peer‑to‑peer transfers. The call was made during a panel discussion hosted by The Kenyan Wall Street, a media outlet that follows fintech developments closely. Njoroge’s stature as a former regulator gives weight to the proposal, prompting immediate reactions from banks, mobile network operators and the Ministry of Finance.

Context and background

Patrick Njoroge served as CBK governor from 2015 to 2023, overseeing a period of rapid digital payments growth in Kenya. Under his watch, mobile money transactions more than doubled, and the country cemented its reputation as a global leader in mobile financial services. After leaving office, Njoroge has remained an influential voice on monetary policy, frequently writing op‑eds and speaking at industry forums. His latest suggestion builds on earlier government initiatives, such as the 2022 “Digital Kenya” strategy, which aimed to increase the proportion of the population using formal digital channels from 70% to 85% by 2025.

The push for bonuses follows a broader regional trend where regulators in Tanzania and Rwanda have experimented with cash‑back or reward schemes to stimulate wallet adoption among low‑income users. In Kenya, mobile money platforms like M‑Pay (formerly M‑Pesa), Airtel Money and T‑Kash already offer occasional promotions, but these are typically ad‑hoc and limited to specific merchants or holidays. Njoroge’s proposal seeks a more systematic, perhaps government‑backed, approach that would ensure consistency and reach the unbanked segments that still rely heavily on cash.

Stakeholders have responded with a mix of optimism and caution. The Kenya Bankers Association highlighted the potential for increased transaction volumes but warned that any bonus scheme must be financially sustainable and not distort market competition. Mobile network operators, who own the majority of wallet infrastructure, noted that they would need clear guidelines on funding sources, eligibility criteria, and compliance monitoring. Meanwhile, consumer groups welcomed the idea, arguing that a predictable bonus could encourage small businesses to shift from cash registers to digital invoicing, thereby improving record‑keeping and tax compliance.

Compared with what is normal

Historically, Kenya’s digital wallet ecosystem has relied on market‑driven promotions rather than government‑mandated incentives. For example, during the 2021 festive season, M‑Pay offered a 5% cash‑back on airtime purchases, but the offer was limited to users who topped up at least Sh200. Such promotions typically last a few weeks and are funded entirely by the service provider. In contrast, a structured bonus payout would resemble the cash‑in‑hand subsidies used in Kenya’s agricultural input programs, where the government allocates a fixed budget to support farmers.

• Frequency: Current promotions are occasional; a bonus scheme would be regular, possibly quarterly or annually.
• Funding: Existing offers are privately funded; Njoroge’s suggestion implies public‑private partnership or direct fiscal allocation.
• Eligibility: Today’s bonuses target specific transactions; a systematic payout could be linked to overall wallet activity, widening the beneficiary base.

Why it matters

For Kenyan SMEs, a reliable bonus could improve cash flow, especially for micro‑enterprises that depend on daily sales. Receiving a periodic credit in a digital wallet reduces the need to carry cash, lowering security risks and simplifying bookkeeping. For the broader economy, higher wallet balances can translate into greater liquidity for mobile money platforms, enabling them to offer lower transaction fees and more innovative services such as short‑term credit. Moreover, a transparent incentive structure can aid tax authorities by creating clearer audit trails, thereby supporting revenue collection without heavy enforcement costs.

Practical steps

• Review your current digital wallet usage: Identify the types of transactions that generate the most activity and ensure they are recorded accurately.
• Engage with your mobile money provider: Ask about any upcoming promotional programmes and how you can qualify for early‑bird bonuses.
• Update your accounting system: Capture wallet balances and bonus credits as part of your regular financial statements to maintain compliance.
• Monitor regulatory announcements: Follow updates from the Central Bank and Ministry of Finance for any formal rollout of the bonus scheme.
• Consider diversifying payment channels: If a bonus is tied to specific wallets, maintaining multiple accounts can maximise potential rewards.

Beavoren Ventures offers a Financial Management & Analysis service that can help SMEs integrate digital wallet transactions into their accounting systems, assess the impact of any bonus payouts, and ensure compliance with emerging regulations.

Talk to our team at Beavoren Ventures - info@beavorenventures.co.ke - to set up your systems correctly.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.