The Central Bank of Kenya (CBK) has reintroduced bank and mobile money wallet transactions, effective January 1, 2023.
The transactions were waived on March 16, 2020 as part of measures to support the Covid-19 pandemic.
A statement from the bank affirmed that between March 2020 and October 2022 the number of Kenyans actively using mobile money increased by over 6.2 million and monthly volume and value of P2P transactions increased from 162 million transactions worth Ksh234 billion, to 440 million transactions worth Ksh399 billion, an increase of 171 percent and 71 percent, respectively.
It added that 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 percent and 410 percent, respectively.
“This outcome confirms that the mitigation measures were timely and effective, and resulted in significant benefits across the financial system. The resumption of revised charges are aimed at building on these gains, facilitate a transition towards sustainable growth of the mobile money ecosystem, and ensuring affordability of payment services for Kenyans”, the statement read in part.
The regulator stated that the revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 percent, and mobile money wallet to bank account by on average up to 47 percent.
Banks and telecommunication companies will announce exact costs for transactions, informed by the pricing principles that were issued by the CBK on December 17, 2020.
They added that tariffs for pay bills that are used to collect and disburse funds by businesses,
companies, and institutions such as schools, utilities, will be reduced by on average 50 percent.
In addition, the charges levied by banks for bank to mobile money transactions will be reduced by on average 45 percent.