ATM Usage in Kenya Falls to Historic Low as Mobile Money Dominates Banking Transactions

The use of Automatic Teller Machines (ATMs) in Kenya has plummeted to a record low - the lowest we've ever seen since the Central Bank of Kenya (CBK) started keeping tabs on these transactions, and its a clear indicator of the massive shift toward cashless banking.

The Big Drop in ATM Transactions

ATM transactions only reached 3.2 million in February of this year, and that's a severely reduced amount from the peak of 20 million transactions we saw back in 2012. The rush to digital payment platforms has been the main force behind this drop in ATM use, as more and more Kenyan customers are becoming obsessed with the convenience factor.

The ability to send money from your bank account straight to a mobile wallet has really reduced the need for ATMs - now people are paying for goods and services right from their phones.

Mobile Money - the King of Digital Transformation

"We've gone back to the levels we saw during Covid when people were completely set on going cashless," Equity Group Chief Executive James Mwangi pointed out during a recent investor session. "This shift towards a more digital way of life isn't about the banks - its about customers demanding it. And if you look at the channels driving this digital transformation - mobile money is right at the top."

To be fair, the decline in ATM use started in mid-2020 when the health protocols that were put in place to stem the spread of Covid kicked in, and people were encouraged to switch to cashless payments. However, even after those restrictions came to an end, the trend has kept going strong - with a record 91.3 million registered mobile money accounts and more than half a million mobile money agents as of February.

The Curious Case of ATM Cards

One interesting thing that's come out of all this is that the number of ATM cards being issued has gone down at a slower rate than the overall number of transactions - suggesting that banks are just keeping on issuing cards as if nothing's happening. There were 10.7 million cards in circulation at the end of February 2026, down from the 16.2 million that we saw at the start of 2019 - that's a drop of 33.4% over a period of 7 years.

And whats even more striking is that transactions themselves have plummeted to around 1/8th of the 28 million high we saw at the peak - which says a lot about how customers are viewing ATM cards - they're essentially holding onto them as a spare but rarely using them.

"Its a cultural thing," says financial consultant Francis Mutonyi at Goldplus Advisory. "We just don't have a culture of using cards the way they do in the west, where cards really are seen as money. Over here, cards were introduced as a way to access money."

The Rise of Prepaid Cards

The good news is that prepaid cards have seen a major boost in popularity over the last 5 years, up to 1.95 million cards in circulation by the end of February. Most high schools now make it compulsory for students to have prepaid cards to keep their pocket money - and customers love prepaid cards for online transactions, like Netflix, because they reduce the risk of getting scammed.

ATM Machines Vanish

There were 2,257 ATMs in Kenya at the end of February 2026, which is down from 2,267 a year prior to that. Co-operative Bank put in a few more machines to bring their total to 620 from 617, while Equity reduced their network to 328 from 345.

The value of ATM transactions has plummeted to a 6 year low of Sh34 billion - but thats a slower drop than the overall number of transactions, indicating that the average value per transaction has actually gone up.

Pesalink Platform Gains Traction

To counter telecoms' dominance in mobile money, banks developed the interbank transfer platform Pesalink, which allows customers to move money between banks instantly. Monthly transaction value on the platform has grown 41 percent year-on-year to Sh110 billion.