The Central Bank of Kenya (CBK) on Thursday, December 17 announced that Kenyans will still enjoy some free mobile money transactions after the expiry of the Covid-19 relief.
CBK announced emergency measures to facilitate an increase in the use of mobile money transactions instead of cash during the Covid-19 pandemic.
In the latest move, CBK revealed that there will be no charge for person-to-person transfers of up to Ksh100 to any customer and network.
Kenyans will also be cushioned by CBK as there will be no charges for transfers between mobile money wallets and bank accounts.
To facilitate the integration of Saccos with the mobile money ecosystem, Saccos regulated by Sacco Societies Regulatory Authority (SASRA) may Levy a charge for transfer between Sacco accounts and mobile money wallets.
CBK will also oversee these charges in the context of the products that banks and Payment Service Providers (PSPs) offer to Saccos.
Going forward PSPs will propose pricing structures that reflect the “Pricing Principles” that CBK has introduced.
The “principles” aim to support the development of an efficient, safe and stable payments and mobile money ecosystem where the customer and public interests are adequately protected.
The measures announced by CBK were set to expire on June 30, 2020, but were extended until December 31, 2020, following a review.
During the emergency measures announced by CBK, there was a significant increase in mobile money usage as person-to-person transactions increased by 87 percent between February and October 2020.
The period also saw an increase in transactions below Ksh1,000 by 114 percent while 2.8 million additional customers used mobile money.
Business-related transactions also recorded significant growth from February to October 2020.
