It is just over a week since the Central Bank of Kenya, the financial services industry regulator, announced the reinstatement of bank-to-M-Pesa and vice versa transaction charges. As part of that move, the CBK directed banks and other financial services players like Safaricom, which runs M-Pesa, as well as other telecommunications companies doing the same, to slash the transaction charges.
“The new charges are significantly lower than those that applied before… The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61%, and mobile money wallet to bank account by on average up to 47%,” the CBK announced on December 6th.
In line with that, Safaricom has also announced a reduction of bank-to-M-Pesa and vice-versa charges, which have been free for the last 2 years as part of the government’s COVID-19 containment, and much to their annoyance.
“In the new changes, bank-to-M-Pesa charges have been reduced by an average of 61%. Additionally, M-Pesa to bank charges have been reduced by an average of 47% and is applicable to customers making M-Pesa to bank transactions,” says Safaricom.
M-Pesa transactions below Kshs 100 remain zero-rated.
And, they have not stopped there. They have gone a step further to extend the same to the rest of the fold.
“The reduced M-Pesa-to-bank tariff will also apply to all M-Pesa Paybill payments that customers use for utilities like electricity, hospital bills, schools, government payments etc., to ensure affordability.”
The revised tariffs (see below) will be effective starting 1st January 2023.
Airtel and Telkom are also expected to share their revised rates, as per the CBK’s directive.
