Airtel Kenya yesterday announced that they had done away with money transfer fees, allowing subscribers to send money within and across the network at no extra cost. This is a similar to what Yu Mobile offers its subscribers, an opportunity to send money across networks at no extra cost, making their money transfer service a lot more affordable to users.

Having eliminated the money transfer fees, and considering the fact that Airtel Money cash withdrawal fees are lower than those of M-Pesa, shouldn’t we all move to Airtel Money?

Comparison of withdrawal fees:

[caption id="" align="alignnone" width="572"] Compiled by pesatalk.com[/caption]

In as much as eliminating the money transfer fees and have lower withdrawal fees, one advantage M-Pesa has over Airtel Money is the fact that it has a wider network of agents at the grassroot level.

According to Communications Commission of Kenya (CCK) Third Quarter Sector Statistics Report 2011/12, there was a 4.5 percent decline in the number of active mobile money service agents in the period between December 2011 and March 2012. A decline attributed to Airtel Kenya – the only operator that reported a decrease in the number of agents.

Airtel Kenya has been trying to widen its Airtel Money network by partnering with second parties. Airtel Money services are available at Posta outlets, all Pesa Point ATMs, Nakumatt, Uchumi, Ukwala, Cleanshelf, selected Tuskys, Housing Finance Branches, all Family Bank Branches and ATMs and all Faulu Kenya branches.