KENYA: CBK Reintroduces Charges for Mobile Money to Bank Transfers

The Central Bank of Kenya (CBK) has reintroduced charges for mobile money to bank transfers that were waived in 2020.

In a statement dated Tuesday, December 6, CBK noted that the changes were effected following consultations between the financial institution and respective banks.

However, it was indicated that CBK had lowered the new rates, which will take effect from January 1,  2023.

"The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent, and mobile money wallet to bank account by on average up to 47 per cent.

"Tariffs for pay bills that are used to collect and disburse funds by businesses, companies, and institutions such as schools, utilities, etc, will be reduced by on average 50 per cent," read the statement in part.

According to CBK, charges levied by banks for bank-to-mobile money transactions will be reduced by an average of 45 per cent.

"The revised charges for bank-to-wallet and wallet-to-bank transactions will be announced by respective PSPs and banks and will be effective from January 1, 2023.

"CBK reiterates its commitment to facilitate the emergence of a payments ecosystem that works for and with Kenyans," read the statement in part.

The waiver of the transaction charges was among the economic interventions that were taken during the start of the global pandemic.

CBK underscored that the move was timely, as the number of transactions improved in that period.

"The number of Kenyans actively using mobile money increased by over 6.2 million.

"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 per cent and 71 per cent, respectively," CBK stated.