Safaricom announced that it is cutting M-pesa transaction fees for sending money by 45% for low-value transaction bands. The new tariffs will be effective 1st January 2021. Company CEO Peter Ndegwa says the move is in consideration of the expiry of the period of zero-rated M-Pesa transactions in light of the ongoing pandemic.
“As guided by the Central Bank of Kenya and taking into account the Principles on the Pricing of Mobile Money Services, we have taken the decision to reduce our M-PESA tariffs by up to 45% for lower value transaction bands. This is in consideration of the expiry of the period for the zero-rated M-PESA transactions and the ongoing Covid-19 and economic circumstances,” says Ndegwa.
The tariff reduction is in line with an earlier announcement by the Central Bank announced pricing revision for Payment Service Providers effective January 1 2021.
Send money transactions between Ksh 101 to Ksh 500 will now cost ksh 6, from Ksh 11 while those between Ksh 1,501 and Ksh 2,500 will now cost Ks 32, down from Ksh 41.
Further, users will now pay Ksh 51 to send amounts between Ksh 2501 and Ksh 3500, down from Ksh 56. Send money transactions above Ksh 20,000 will cost Ksh 105.
Safaricom will zero-rate M-Pesa transfers below KSh 100, and enjoy free transactions between M-Pesa and bank accounts in line with CBK’s earlier announcement. Safaricom’s move is likely to set precedence for other payment service providers who are expected to announce their revised charges between now and January, 1 2021.
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