- The Central Bank of Kenya (CBK) has resumed charges for mobile money and bank account transactions.
- Transaction charges were stopped in 2020 to facilitate the use of mobile money during the COVID-19 pandemic.
- While the CBK resumes charges, they will be significantly lower than what was applicable before the pandemic.
On March 16, 2020, the CBK waived transaction charges between mobile money wallets and bank accounts. It was part of emergency measures to facilitate the use of mobile money during the COVID-19 pandemic.
However, the apex bank has today, December 6, 2022, announced the resumption of transaction charges between mobile money wallets and bank accounts.
According to the CBK’s statement, the new charges will be lower than what it charged before they were waived.
The maximum charges for transfers from mobile money wallets to bank accounts will be reduced by up to 61%, while transfers from mobile money wallets to bank accounts will be reduced by 47%.
Banks will also reduce how much they charge for bank-to-mobile money transactions by 45%.
According to the CBK, waiving transaction charges between bank accounts and mobile money wallets has proven fruitful.
The number of Kenyans using mobile money increased by 6.2 million, while the value of monthly P2P transactions increased from 18 million transactions worth about Ksh 157 billion to over 113 million transactions worth Ksh 800 billion.
It said these figures confirm that the mitigation measures were timely and effective, and resuming transaction charges is aimed at building on these gains, facilitating a transition towards sustainable growth of the mobile money ecosystem, and ensuring affordability of payment services for Kenyans.