CBK Revives Charges For Mobile Money And Bank Transfers
CBK explained that the charges were reintroduced upon consultations with the financial institutions and banks.
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The Central Bank of Kenya (CBK) has reintroduced charges for transactions between mobile money and bank accounts, more than two years after they were waived in the wake of the COVID-19 pandemic.
In a statement on Tuesday, December 6, CBK explained that the charges were reintroduced upon consultations with the financial institutions and banks.
The charges were waived on March 16, 2020, as part of the emergency measures to facilitate the use of mobile money in the context of the COVID-19 (Coronavirus) pandemic.
The new charges are however significantly lower than those that applied before and will apply after January 1, 2023.
CBK Governor Patrick Njoroge. /FILE
"The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent, and mobile money wallet to bank account by on average up to 47 per cent. Pricing Principles were issued by the CBK on December 17, 2020, as the guiding framework for setting tariffs and charges for mobile money services. The Pricing Principles relate to; customer centricity, transparency and disclosure, fairness and equity, choice and competition, and affordability.
"Tariffs for paybills that are used to collect and disburse funds by businesses, companies, and institutions such as schools, utilities, etc, will be reduced by on average 50 per cent," CBK announced.
The bank regulator added that charges levied by banks for bank-to-mobile money transactions will be reduced by on average 45 per cent.
The revised charges for bank-to-wallet and wallet-to-bank transactions will be announced by respective financial institutions and banks and will be effective from January 1, 2023.
This ends a two-year spell whereby Kenyans have been enjoying transactions between mobile money and bank accounts for their daily use, free of charge.
CBK on that note explained that 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 Ksh.399 billion, an increase of 171 per cent and 71 per cent, 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 per cent and 410 per cent, respectively," CBK revealed.
