Central Bank of Kenya (CBK) has announced the reintroduction of charges on transactions between mobile money and bank accounts.
CBK said the new charges will be significantly lower than what was applied before.
“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,” the statement read.
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 wallets to banks by up to 47%.
Tariffs for paybills that are used to collect and disburse funds by businesses, companies, and institutions such as schools, utilities, and more will be reduced by, on average, 50%.
The charges levied by banks for bank-to-mobile money transactions will be reduced by an average of 45%.
The revised charges for bank-to-wallet and to-bank transactions will be announced by respective telcos and banks and will be effective from January 1, 2023.
In its report, CBK further said that the number of Kenyans using mobile money increased by over 6.2 million since the charges were waived up to October 2022,
The monthly and Of P2P transactions increased from 162 million transactions worth KES 234 billion to 440 million transactions worth KES 399 billion, an increase of 171% and 71%, respectively.
The monthly volume and value of transactions between PSPs and banks increased from 18 million transactions worth about KES 157 billion to over 113 million transactions worth KES 800 billion, an increase of 527 and 410%, respectively.