- Advertisement -

M-Pesa-Bank Transaction Charges Are Back: Here’s Everything You Should Know

- Advertisement -

The Central Bank of Kenya (CBK) has announced the reintroduction of charges for transactions between mobile money wallets and bank accounts, which were waived on  March 16, 2020, as part of the measures to facilitate use of mobile money in the context of the COVID-19.

“Following consultations with PSPs (payment service providers) and banks, CBK has reviewed the applicable maximum charges for transactions between mobile money and bank accounts, and their alignment to the Pricing Principles,” CBK said in a statement.

The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 percent, and mobile money wallets to bank accounts by on average up to 47 percent.

Tariffs for paybills that are used to collect and disburse funds by businesses,  companies, and institutions such as schools, and utilities will be reduced by on average 50 percent.

The charges levied by banks for bank-to-mobile money transactions will be reduced by on average 45 percent.

“While COVID-19 adversely impacted people’s livelihoods and businesses, mitigation measures enabled the payments ecosystem to protect vulnerable Kenyans, support  businesses, and strengthen economic resilience. As a result, the payments ecosystem expanded significantly,” CBK stated.

Between March 2020 and October 2022, the number of Kenyans actively using mobile money increased by over 6.2 million. The monthly volume and value of P2P transactions increased from 162 million transactions worth Ksh234 billion to 440 million transactions worth Ksh399 billion,  an increase of 171 percent and 71 percent, respectively.

The monthly volume and value of transactions between PSPs and banks increased from 18 million transactions worth about Ksh157 billion to over 113 million transactions worth Ksh800 billion, an increase of 527 percent and 410 percent,  respectively.

“This outcome confirms that the mitigation measures were timely and effective, and resulted in significant benefits across the financial system. The resumption of revised charges is aimed at building on these gains, facilitate a transition towards sustainable growth of the mobile money ecosystem, and ensuring affordability of payment services for  Kenyans,” CBK added

The revised charges for bank-to-wallet and wallet-to-bank transactions will be announced by respective PSPs and banks and will be effective from January 1, 2023.

Read: Kenyans Taken Off CRB, Outstanding Mobile Loans Halved in CBK Deal

>>> CBK Transfers Ksh4 Billion From Reserve Fund To The Consolidated Fund

- Advertisement -
BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
- Advertisement -
Must Read
- Advertisement -
Related News
- Advertisement -
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments