The Central Bank of Kenya (CBK) has today announced the re-introduction of mobile money transaction fees marking the end of free M-pesa transactions for transfers under Sh1000.
From January 2021, only mobile money transactions below Sh100 will be free as providers reinstate the sending fees in accordance with the CBK directive.
“Following consultations with Payment Service Providers (PSPs), CBK will allow the emergency measures to expire on December 31, 2020,” CBK said.
CBK says that since the fees were waived, the monthly volume of person-to-person transactions increased by 87pc between February and October 2020.
Press Release – Expiry of Emergency Measures to Facilitate Mobile Money Transactions and the Introduction of Principles to Guide Pricing pic.twitter.com/0SceKW2XD0
— Central Bank of Kenya (@CBKKenya) December 17, 2020
Over this period, the volume of transactions below Sh1,000 increased by 114pc with about 2.8 million additional customers using mobile money.
Banks will, however, be obligated to continue offering free transfer of cash between accounts and mobile wallets like M-pesa. Saccos will be allowed to charge transactions.
CBK had introduced the waiver in mid-March for three months and extended it in June to the end of the year to help Kenyans deal with the economic hit brought about by the Coronavirus pandemic.