M-Pesa, Airtel Money daily transaction limits increased to Sh500,000

Mobile money providers in Kenya, Airtel Money and Safaricom’s M-Pesa have received approval from Central Bank of Kenya (CBK) to increase their daily transaction limits to Sh500,000 from Sh300,000, in a strategic move aimed at enhancing the country’s digital economy.

This decision by CBK is expected to provide increased convenience to customers, especially small businesses as cashless transactions become more prevalent.

The change anticipates empowering customers and partners by allowing them to conduct larger transactions and manage their finances more effectively.

Currently, the maximum amount of money transactions per day for banks in Kenya vary depending on the bank and the type of account.

However, CBK is working with banks to allow customers to increase the amount they can transact beyond the Sh1 million limit without having to report to the regulator.

According to the Airtel Money (K) Ltd Managing Director Anne Kinuthia-Otieno, the move also aligns with Airtel Money’s commitment to enabling seamless and affordable digital transactions, with the company aiming to expand its network of mobile money agents to 120,000 by the end of 2023. In addition to the higher account limit, M-Pesa customers will also enjoy an increased daily transaction limit of Sh500,000 per day.

While the per transaction limits will remain at Sh150,000, customers can conduct multiple transactions up to the Sh500,000 daily limit.

The move is set to benefit small businesses in Kenya, as cashless transactions continue to rise.
In the last financial year ending March 2023, more than 606,000 businesses received payments through Lipa Na M-Pesa, with a total transaction value of Sh1.625 trillion.

This strategic step by Airtel Money and Safaricom’s M-Pesa underlines their commitment to fostering a more robust and accessible digital economy in Kenya, where cashless transactions and financial inclusivity continue to take centre stage.

It may encourage more people to use mobile money services as a convenient and safe way of sending and receiving money.

The move is also likely to increase the revenue and profitability of mobile money operators, as well as the tax base for the government.

This is in addition to creating more competition and innovation among mobile money providers, as they seek to offer better services and products to their customers. However, with increased limits, comes issues of security and reliability, with customers facing risks such as fraud, theft, network failure and agent shortages.