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Mobile money, Money-changing and Social Relations at the Kenya-Uganda Border Points

Eric MAGALE. “Mobile Money, Money-changing and Social Relations at the Kenya-Uganda Border Points” Mambo! vol. XXII (2), 2025.

The Busia and Malaba border points between Kenya and Uganda are not only a melting point of cultures and nationalities; it is also the hub of significant informal commercial activity. Money therefore plays a critical role in facilitating exchange. Within this understanding, mobile money stands out as an important medium of exchange and money changing, a critical means of exchanging value. This article describes the social embeddedness of the trading community at the border points and the distinctive role that mobile money and money changing practices plays in this regard. It also highlights the symbiotic relationship between money changing practices and mobile money agents from multiple networks and how different actors in this multicultural space establish trust and conviviality. These insights are not entirely self-evident and only surface upon understanding the everyday practices of these actors. This article contributes to ideas on the anthropology of money by Sibel Kusimba, Bill Maurer, Simba Gukurume and others.

 

Introduction

There are two official border points between Kenya and Uganda, the Busia and Malaba border points, which are busiest border crossing points along the Northern Corridor connecting landlocked countries of Uganda, DR Congo, South Sudan and Rwanda to Mombasa port. Both are one-stop border points meaning that there is one point of clearance as you enter either country as opposed to other border points where one needs to clear from one country and clear again in the bordering country.  This is ostensibly to facilitate the seamless movement of people and goods across borders. Border points between Kenya and Uganda have therefore traditionally been a hotspot for informal trade, which has been sustained by people crossing and going about a variety of activities along the border. The meshing of cultures and identities and the often-harmonious co-existence of neighboring communities, buzzing trade activity along this corridor (African Business, 2020) have caused physical and monetary exchange systems to evolve over time, and in particular, after the emergence of mobile money in the late 2000s.

For a long time, physical cash in Ugandan and Kenyan shillings were used for exchange and trade at the border. However, the arrival of mobile money1 in 2007 (in 2009 for Uganda) expanded the ways through which one can pay or be paid. In different situations, it is advantageous to use a certain currency or form – physical or mobile money and this complicates the issue of conversion. Some products and services are priced in local Ugandan shillings (UGX) and some are priced in Kenyan shillings (KES) and also in different instances, depending on where one is paying, both currencies are accepted using informal conversion rates and this requires people to make calculated decisions on which method of payment or currency to use. Conversion therefore becomes a crucial component of everyday life of informal traders, workers and customers at the border. This phenomenon has resulted in the Kenya-Uganda border posts becoming a field of negotiation, reengineering, and (de)construction of the value of money with different actors at the borders gaining power and agency to redefine value, including outside of the formal financial systems. The notion of exchange and value is therefore particularly relevant in the Kenya-Uganda borders context.

In his book How Would You Like to Pay? How Technology Is Changing the Future of Money, leading anthropologist Maurer (2015) posits that if one is to truly understand money, they ought to understand and appreciate the complex infrastructures and social relationships it relies on. He makes two critical points in his book; he considers the role of money in everyday life and views money as relationships. These ideas have also been shared by anthropologist Sibel Kusimba in her book Reimagining Money: Kenya in the digital finance revolution. In her work in examining the social relationships of mobile money networks in Western Kenya, Kusimba shows how money networks are reciprocal and argues that mobile money remittances play a critical role creating relationships while strengthening existing ones (Kusimba, 2021; S. B. Kusimba et al., 2015). Gukurume and Mahiya (2020) offer a slightly nuanced reading of this, highlighting the ambiguity associated with mobile money given that it triggers contestation but equally reinforces social relations.

The second point that Bill Maurer makes is the implications of how new financial technologies (such as mobile money) are changing these relationships primarily by changing how we pay. In his book The future of money: how the digital revolution is transforming currencies and finance, economist Prasad (2021) foresees that it is just a matter of time before cash recedes in importance and digital payment technologies take over. Indeed, the rapid diffusion of mobile financial technologies, which has its roots in Kenya, in different political ecologies, invites us to re-think how we view money and value, and the social implications of the changing monetary ecosphere. 

A lot of analytical focus on mobile money has focused on its positive and negative impacts on financial inclusion (Bateman, 2018; Bateman et al., 2019; Jack & Suri, 2011; Suri & Jack, 2016) while scholarly attention on money changing in Africa has underscored its role in circumstances of crisis (Gukurume, 2015; Mawowa & Matongo, 2010). Only a handful of studies have highlighted the aspect of mobile money and cash more broadly in social relations. This work, therefore, focuses on understanding the evolution of the monetary landscape at the Busia and Malaba border points in recent times, and the role that mobile money and money-changing practices play in the relationships between informal traders at the border.

Figure 1: Map showing Busia and Malaba borders and its position in East Africa. Source: Voice of America

This study relied on ethnographic work done at the two border points. This proved instrumental in understanding the role of the mobile money and money-changing, and their social relevance to livelihoods and people’s relationships at the coalface of cross-border trade. 

Fieldwork for this research was conducted between June and July 2025. As a researcher who has previously been to the border point, I approached fieldwork with some familiarity of the general geography but much less so with the intricacies and daily interactions of the traders and officials at the two border points. The initial idea was to observe the happenings and cross the border points and interact with traders through buying food, drinks and other small supplies, using motorbike taxis, changing money, depositing and withdrawing money using mobile money and crossing the border severally to get a feel of the life of daily living and work at the border points. This was effective in understanding the interactions and locating the right people who are differently placed whom I could speak to gather more detailed information. Language was not a significant issue; when I was in Kenya, I could easily communicate with people in Swahili which I am well versed in or in English and while in Uganda, I could easily communicate to people in English. I only encountered a challenge communicating with a few traders on the Uganda side who could only speak in Luganda which I was not familiar with. In those few cases, as I did not have an interpreter to assist me, I opted to respectfully discontinue the interview as I surmised that I would miss out on nuanced understanding which is often concealed in language. Other than explaining to my interlocutors that I am conducting research and obtaining their informed consent for interviews, I did not encounter any significant challenges both with my interlocutors and the authorities on both sides of the border. 

Data collection involved conducting unstructured face-to-face interviews, observation, a life story inquiry and ethnographic approaches. I interacted with twenty-seven (27) informants who included informal traders, wage workers and ordinary citizens (customers at the borders), mobile money agents (M-Pesa and MoMo money), money changers and formally-employed people such as border agents and officials from the tax authority. This variability among the informants, in age and gender, allowed me to obtain a diversity of perspectives and avoid saturation. The data collected was analyzed thematically and informed the findings of the study.

As one approaches the border points, there is a long queue of trailers snaking along the road for about two kilometers. As you get even closer, one cannot help but notice the abundance of micro and small businesses on rows on either side of the road. From small eating spots and drinking dens, to internet cafes and shops selling popular Kenyan and Ugandan brand household goods brought in from the inner parts of the country. One cannot miss the hundreds of people hawking wares and food. Some are stationed on the side of the roads under large umbrellas selling khat, SIM cards, street food and drinks. There are hundreds of bicycles and motorcycles (or simply boda-bodas) carrying all sorts of goods across the border. There are also dozens of buses and matatus (vans) transporting people and cargo inland. There is a buzz of activities which makes up daily life at the border.

Figure 2 : Boda-boda riders ferrying goods across the Busia border (Magale, 2025)

As one approaches the buildings housing the border authorities, you will be confronted by greetings and chants of “unavuka?” (Swahili translation for “are you crossing over?”). You will also hear, “you need much requirement?” from brokers who are offering help in smoothening the clearance process at the border, more so if one is crossing over with a car. Some of them are clutching on papers ostensibly to give the impression of professionals. One broker directs me to where I can part the car. While still sitting in the car, I notice that he is not moving away from the car and as soon as I look at him, he gestures with his hands and approaches. He is very polite and calls me “my boss” and introduces himself as Ochuna (pseudonym). I put on my cap and step out of the car which had started to feel like a heating chamber from all the sun. I start to engage Ochuna and ask him about the process of clearing the car. He explains that I will need my national ID, the car’s logbook and my passport and if I do not have one, I could quickly get an inter-state pass for 400 shillings at the internet café. He explains that I will also need motor insurance at Kes. 5,000 which he is in a position to facilitate at a small fee. He will also help me get Ugandan shillings if I need some. I take down Ochuna’s number and promise to call him if I need the car cleared after I walk around the border to make an M-Pesa transaction and take a cold soda.

The Kenya side of the border has hundreds of mobile money agents; some housed in shops in buildings and repurposed containers, some in small kiosks and others sitting under umbrellas. I noticed one such agent selling sodas and approached them to buy a soda and possibly withdraw some cash. I approach and ask for a cold coke. “Dakika moja tu!” (Just give me a minute!) she says as she walks to a nearby shop and comes out with a soda. It became obvious that she did not have a cold soda at her stand and had to get it from elsewhere. As I sit on the bench sipping my soda, I notice another M-Pesa agent opposite me who is also a ticketing agent for a bus service company. Indeed as I look around, I noticed that at least half of the small traders of all kinds at the market are also mobile money agents. 

I am curious to know why and engage the vendor first by asking how I can pay for the soda with no hard cash and she replies “withdraw”, pointing out the M-Pesa number at the side of her stand. I ask how much I will get charged and she quickly says “11 shillings”.  Next to her is another woman selling fried cassava. I ask for some and how I can pay. “Withdraw from that number” she says as she points to the same M-Pesa number. I oblige. As I pay, the soda-seller confirms to the cassava-seller that I have paid. “Inaleta Eric?” (“Is the sender Eric?”), and I nod. At this point, I am curious to know how the two traders interact with M-Pesa. The soda-seller explains that a majority of their customers pay via M-Pesa. She also explains that many of her colleagues who are not agents use her M-Pesa. It is then noted down and reconciled at the end of each day. “Many of our transactions are between 20 and maybe 200 shillings so the customers are not charged much, and I also get to make some small money from the transactions. I also do not get charged. The other traders who use my M-Pesa only get charged when they withdraw the money once a day or even after a week”. I quickly understand that this is common practice at the border.  

 

Figure 3: Traders at market doubling up as M-Pesa agents (Magale, 2025)

One of the reasons M-Pesa became a runaway success is that it transcended the formal sector and was widely used in the informal sector. As I walk away, I reflect on Sibel Kusimba’s work on mobile money remittance networks and relationships. It is clearly the case that mobile money use is rampant on the Kenya side of the border and that it is a daily point of interaction among traders and their customers as they exchange value. It is clear that mobile money has helped these actors forge relationships and establish trust among themselves. It is also the case that people do not just accept or resist technologies but they also repurpose and redefine its use. This is clearly the case with mobile money at the border; informal traders and their customers have repurposed M-Pesa from the classic money transfer use and have redefined its use to facilitate payments.

M-Pesa has dedicated services for mobile payments namely Paybill, Lipa na M-Pesa (meaning Pay with M-Pesa) and Pochi la Biashara (meaning Business wallet). Paybill is used for more formal service-based businesses such as hospitals, utilities and even churches and government services. Lipa na M-Pesa is fashioned as a point of sale in stores such as supermarkets, restaurants and is also common with small and micro businesses. Pochi la Biashara was meant for small traders who typically find it difficult to separate their personal finances from those of their enterprises. The payment service allows them to accept payments to their personal M-Pesa number allocated to their business wallet, separate from their personal wallet. I was therefore curious to know if traders use these services and how they perceive them. I approach a trader with a Lipa na M-Pesa sign and is also an M-Pesa agent. As he goes about his business, I engage him and he explains that he has both options so the customer can choose for themselves what option they prefer. They can either withdraw or use Lipa na M-Pesa. I ask what the charges are and he explains that when a customer pays using Lipa na M-Pesa, he gets a few shillings less; the transaction fees is deducted off the top. He also explains that he does not have Pochi la Biashara because it came after he was already using Lipa na M-Pesa and he did not see the benefit of switching or having another payment option. 

Figure 4: Small trader with a Lipa na M-Pesa till number and doubling as an M-Pesa agent (Magale, 2025)

As I walk to the customs area on the Ugandan side of the border, I notice men in yellow coats with ‘money changer’ written on the back, huddled in conversation and holding large wads of cash of both Kenyan and Ugandan currency. I approach them to get some Ugandan shillings and engage them about their job. One explains that they have been doing this for a long time and serves thousands of clients per day. I ask if what they are doing is legal and they all say “Of course”. One explains if it was illegal, they would not be doing it openly in front of the authorities. He further explains that it is for this reason that they have the yellow coats with numbers so that one can identify them easily and if one had a complaint of fake notes, they could always trace it back to the specific money changer. He also explains that there are other money changers at the other gate who have distinct orange coats for the same reason. “It has been like this for more than 10 years. There is only one FOREX shop (currency exchange bureau) here and one on the Kenya side which mostly changes dollars and serves wazungus (white people), but all the other people change their money here,” he remarked. 

Figure 5: A group of money changers at the customs area (Magale, 2025)

Figure 6: Money changer in action at the entry gate area (Magale, 2025)

As one enters Uganda, both at the Busia and Malaba borders, one notices a significant number of mobile money agents, just as was the case on the Kenyan side of the border. The notable distinction between agents at the Kenyan and Ugandan side of the border is that many of the mobile money agents in Uganda transact money via M-Pesa, MoMo money (MTN Mobile money) and Airtel Money. I did not notice any MoMo money agents in Kenya and only a handful of Airtel Money agents. M-Pesa was clearly the dominant mobile money service on the Kenyan side of the border and this was not strange given M-Pesa’s pervasive market power. As one moves further inland, the number of M-Pesa shops becomes increasingly scarce and eventually disappears, and more MoMo money and Airtel Money agents emerge. It was clear, at least from the Ugandan side, that mobile money networks at the border operate in harmony with each other to facilitate transactions.

Where M-Pesa goes, MoMo money and Airtel Money seem to follow. Both networks have a mobile payment service for point of sale transactions which works similar to the Lipa na M-Pesa. During my time at the two border points, I made numerous trips  to and from Uganda and Kenya. After the second day, it was clear to me that the majority of small traders and their customers used cash as opposed to some form of mobile money. MoMo money and Airtel money till numbers were only used in more formal establishments. In fact, many establishments did not have provisions for paying using mobile money. This was perhaps the reason why there was less money-changing activity in Kenya, compared to Uganda. Customers in Kenya seemed to prefer using M-Pesa to make purchases and traders easily accepted payments on M-Pesa. This infers that on the Ugandan side, mobile money and money-changing works side-by-side to facilitate trade given that they heavily relied on cash. It is also perhaps the reason why Ugandan authorities have allowed money-changing to flourish freely in an informal setup unlike Kenya and other jurisdictions where money-changing activity is more formalized.

 

Figure 7: Mobile money and money changing points at the Kenya-Uganda border at Busia (Magale, 2025)

 

Figure 8: Mobile money and money changing points at the Kenya-Uganda border at Malaba (Magale, 2025)

Figure 9: Agents operating multiple mobile money networks operating side-by-side at the Uganda side of the Busia and Malaba borders (Magale, 2025)

What was perhaps more striking about the monetary landscape at the Ugandan side of the border was the efficiency with which mobile money agents and mobile money were able to transact ‘barter’ as they called it. Mobile money agents easily accept cash in either Ugandan or Kenyan shillings and convert the same at some established rate and deposit to the customer’s mobile money account in the other currency on MoMo Money, M-Pesa or Airtel money. At some point during the day, the mobile money agents would then change the cash into the required currency to maintain their desired float of the different currencies. With this perpetual loop, each of these actors aim to make a small margin at each of these transaction points. The symbiotic and dependent relationship between mobile money agents and money changing agents again reflected the underlying mutually beneficial social relations. 

The few traders who accept mobile money payments are also co-opted into these social relations. On a few occasions, I easily used Kenyan shilling notes to pay for meals on the Ugandan side of the border several times, indicating that Kenyan cash could be used or exchanged easily depending on the need. A restaurant owner posited a typical scenario, explaining that if he needed to purchase supplies from Kenya, it would be more convenient for him to deposit the cash on M-Pesa and pay the supplier in Uganda. The goods would then be delivered to Uganda by boda-boda, meaning he would not need to cross the border himself. However, if he needed to buy goods from a supplier in Uganda, he would first need to convert the cash in order to pay or deposit the Ugandan shillings into their MoMo money to pay the supplier, provided they accept mobile money. The key point being that mobile money and money-changing at the border points helps to funnel informal traders, their customers, mobile money agents and money changers into relations of trust and mutual benefit.

Conviviality, as theorized by scholars like Nyamnjoh (2015) and Nowicka (2019) and the African philosophy of Ubuntu2 as referenced by Ogude (2019) highlights the importance of forging connections across social divides and multicultural environments, and its powerful means of building social cohesion. The Busia and Malaba border points are a melting point of culture and nationalities who co-exist and make a living at the border. Indeed, I encountered not just Kenyan and Ugandan nationals but also migrants from Rwanda, Burundi, Somalia and Sudan at the border. Most of them were informal traders on either side of the border. This inquiry shows that mobile money and money-changing practices are being used as a tool for establishing mutually-beneficial relationships, and conviviality between different actors at the border. The border as a research site was particularly useful in uncovering this phenomenon, one that (Kusimba, 2021; Kusimba et al., 2015) equally observed further inland in Kenya. (Rodima-Taylor, 2022) in her study of fintech platforms in Kenya and South Africa, and their role in facilitating mutual help aptly characterizes this phenomenon as the platformization of Ubuntu, which remains relevant in modern African society.

In a broader sense, the role of mobile money in fostering human relationships at the border points is critical to continental ambitions on trade. The Africa Continental Free Trade Area (ACFTA) aspires to catalyze trade in the continent by creating a single market for goods and services, and presently intra-African trade only accounts for roughly 15% of all the trade that Africa does (Afrexim Bank, 2024). This aspiration will require the free movement of these goods and people. Mobile money and the social relations at the border points throughout Africa will therefore be continually pertinent to this ambition, and the discourse on ACFTA does not start and end at tariffs and infrastructure. This study therefore offers an entry point to future research into this area and complements other studies done at border points on language, identity and nationality (Kokome, 2023), migration (Teye & Oucho, 2023; Oucho, 2006; Nshimbi & Moyo, 2017) and borders (Oni & Okunade, 2017; Shulika & Okunade, 2025). The conversation about social and economic life at African borders continues.

Footnotes

 1Safaricom’s M-Pesa (M for Mobile and Pesa meaning money in Swahili) is the dominant Mobile Network operator (MNO) with a market share of 91% (or 45.8 million people) followed by Airtel Money by Airtel (9%) (CAK, 2025). In Uganda, there were 33.7 active mobile money subscriptions as at April 2025 (UCC, 2025) served by MTN’s Momo money, Airtel Money from Airtel who are the dominant MNOs.

2Ubuntu is an African philosophy that is premised on the ethical belief that an individual’s humanity is fostered in a network of human relationships (Ogude J., 2019)

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OpenEdition vous propose de citer ce billet de la manière suivante :
Eric Magale (8 décembre 2025). Mobile money, Money-changing and Social Relations at the Kenya-Uganda Border Points. Mambo ! Consulté le 16 avril 2026 à l’adresse https://doi.org/10.58079/15aoa


2 réponses

  1. Clearly shows how technology has changed, and is changing the future of money.

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