Today, the Central bank of Kenya announced the resumption of charges for transactions above Ksh 100 effected through inhouse bank wallets linked to SACCOs. Inhouse banking wallets refer to bank-owned wallets that facilitate mobile money and other financial services, often involving a third party tech provider.
A press release from the banking regulator says the resumption is necessary to maintain the viability of services between banks and SACCOs, which rely on mobile wallets for a larger share of their transactions.
“A recurring concern has been that the viability of these services may be adversely affected in the current price regime, given the inability to cover the underlying costs. This is a significant risk for SACCOs and their extensive membership due to the lack of other alternatives to connect to the mobile money ecosystem.”
CBK
Additionally, the reinstatement of the charges for transfers between banks and mobile money wallets will also provide space to increase the connection option for credit and savings societies.
CBK will review the charges in line with the principles of customer-centricity, transparency and disclosure, fairness and equity, choice and competition and affordability, announced on December 17.
In December, the central bank announced the expiry of waivers for mobile money transactions below Ksh 1000 introduced on March 16 to cushion individuals against the economic blows of COVID-19. Upon the announcement, the regulator hinted at reviewing mobile money tariffs and charges, which CBK will implement gradually.
