Kenyans will continue to enjoy the free tariff on mobile money transactions for any amount below Kshs. 1000 until the end of 2020. Money transfer to bank accounts from mobile wallets will also attract zero merchant fee, according to a revised directive from the Central Bank of Kenya.
The Central Bank of Kenya in March this year spearheaded the introduction of the free tariff and waivers in consultations with telco companies and local banks in a bid to encourage cashless transactions across the country as a measure to slow down the spread of Covid 19.
“A significant increase in the use of mobile money channels by individuals in both value and number of transactions was noted. Most of the increase was in low-value transactions of Ksh. 1,000 or less,” a statement from CBK revealed.
The banking regulator further noted that the (Ksh. 1,000 or less) transfer band accounted for at least 80 percent of mobile money transactions which implies more vulnerable households have benefited from the plan since the transfer charges were eliminated.
Latest analysis show more than 1.6 million additional customers are now using mobile money channels. The CBK exuded confidence in the programme saying – “these measures were timely and highly effective in facilitating official and personal transfers at a time of great need.”
Due to the increased wallet and transactions limits; and the subsequent spike in usage at high amounts and greater convenience, CBK has made the following emergency measures valid until 31st December, 2020:
1. Free tarrif – There will be no charge for mobile money transactions of up to Kshs. 1,000
2. The existing tariff for transactions above Ksh. 70,000 remains in force
3. No Kenyan will be charged by Payment Service Providers (such as Safaricom, Airtel and Telkom) and commercial banks for transfers between their money wallets and bank accounts.
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Central Bank of Kenya’s Monetary Policy Committee will meet on Thursday, June 25, 2020, to review the outcome of its previous policy decisions and recent economic developments. Their findings will inform the direction of the Central Bank Rate (CBR).