CBK announces reintroduction of charges for transactions between mobile money and bank accounts

Tuesday, December 6th, 2022 10:39 | By
CBK retains anchor rate at 8.75pc
Central Bank of Kenya (CBK). PHOTO/Courtesy

The Central Bank of Kenya (CBK) has announced the reintroduction of charges for transactions between mobile money wallets and bank accounts.

The transaction charges were waived on March 16, 2020, as part of the emergency measures to facilitate the use of mobile money during the context of the COVID-19 (Coronavirus) pandemic.

The revised charges for bank-to-wallet and wallet-to-bank transactions, which will be lower than the previous, will be announced by respective payment service providers and banks and will be effective from January 1, 2023.

In a statement on December 6, 2022, CBK said 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 wallets to bank accounts by on average up to 47 percent.

Tariffs for paybills that are used to collect and disburse funds by businesses, companies, and institutions such as schools, and utilities will be reduced by on average 50 percent.

The charges levied by banks for bank-to-mobile money transactions will be reduced by on average 45 percent.

CBK stats on mobile money transactions

Between March 2020 and October 2022 when the charges were suspended, the number of Kenyans actively using mobile money increased by over 6.2 million. The monthly volume and value of person-to-person 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.

Over the same period, 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 is 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," CBK stated.

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